Mid-tier IT services firm Persistent Systems reported an eight percent year-on-year jump in net profit to Rs 228.76 crore for the quarter ended June 30, as compared to the same quarter in the last fiscal year.
Consolidated revenue for the first quarter stood at Rs 2,342 crores, increasing by 23.37 percent YoY. Revenue was up 3.5 percent on a QoQ basis. This is slightly more than CNBC TV-18 poll's estimated revenue of at Rs 2,325 crore and 3.1 percent QoQ growth.
Net profit declined by 9 percent on a QoQ basis significantly missing CNBC-TV18’s poll estimates of 10.5 percent growth. The EBIT or operating margin declined to 14.9 percent in Q1, missing estimates of flat margins of 15.4 percent reported last quarter.
Persistent had earlier said that it expects to improve margins by 200-300 bps over the next two-three years.
Sandeep Kalra, CEO, Persistent Systems said, "We commenced the year by celebrating a significant milestone of surpassing $1 billion in annual revenue with our clients, partners, and team members. As we enter our new fiscal year, I’m pleased to share that we have sustained our growth momentum despite the challenging macroeconomic conditions."
"Our Digital Engineering leadership, extensive experience across key industries, curated partner ecosystem, and the ability to stay ahead of disruptive technology trends has led to our ongoing success," he added.
Persistent System's deal total contract value (TCV) declined to $380 million in Q1 as compared to $421.6 million in Q4FY23.
Attrition rate was down to 15.5 percent on last twelve month (LTM) basis as compared to 19.8 percent in the previous quarter. In FY24, it plans to hire 850-1,000 freshers as compared to 3,000 in FY23.
In terms of segment-wise revenue, BFSI grew 6.21 percent QoQ, growth in healthcare and life sciences declined by 2.91 percent QoQ and software, hi-tech and emerging Industries grew by 3.23 percent QoQ.
On a year-to-date basis, Persistent Systems has been the best performer on the Nifty IT index.
The company announced a final dividend payment of Rs 12 per share and a special dividend of Rs 10 per share on achieving $1 billion in annual revenue, were passed with the requisite majority, the company said. This makes the total dividend for FY23 to be Rs. 50 per share as compared to Rs 31 per share for FY22.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
