April 09, 2021 / 17:46 IST
Axis Direct's research report on Persistent Systems
Persistent’s Q1 revenue and EBITDA were in line with our expectations. Higher forex gain led to better PAT. Margin was down 80 bps QoQ due to full quarter of IBM Watson deal (on 290 bps drop in Q4FY16) and visa costs (100 bps), which was partly offset by efficiencies.
Management re-iterated IBM Watson deal remains on track to deliver ~USD 50 mn in FY17. Investments in this deal will impact margin by ~200-250 bps p.a. in the first two years (especially FY17).Momentum will pick up in the coming quarters. IP (28% share) will have volatility across quarters given nature of business and Q4 is seasonally strong quarter (IBM Watson deal should aid Sep and Dec quarters). On Services (~48% share), client interactions suggest investments on digital/ innovation budgets becoming mainstream.
For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 
Read More
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!
