Persistent Systems Q1 net profit rises 33.9% on year to Rs 306 crore

Pune-based mid-tier IT firm Persistent Systems on Thursday reported a 33.9% increase in net profit to Rs 306.41 crore for the quarter to June, from Rs 228.76 crore a year ago. Sequentially, net profit fell 2.8% from Rs 315.3 crore in the previous three-month period.

The company’s revenue from operations increased 17.9% year-on-year to Rs 2,737.17 crore from Rs 2,321,17 crore. Quarter-on-quarter increase in revenue was 5.6% from Rs 2,590.5 crore in the January-March period.

Persistent Systems’ core business – software, hi-tech and emerging industries – grew slower at 4.1%, as compared to the banking, financial services and insurance (BFSI) sector, which grew 8.9% to Rs 843.15 crore, boosting its overall revenue. The order booking for the quarter improved to $316.8 million in total contract value (TCV) from $462.8 million.


Reporting the 17th consecutive quarter of revenue growth, chief executive Sandeep Kalra said, “We have pivoted to an AI-led, platform-driven services approach, deepening our hyperscaler partnerships and developing a suite of innovative solutions.”

In dollar terms, revenue increased 14.3% year-on-year to $1.2 billion while profit was up 16% to $328.2 million.

The company’s operating margin in the first quarter of this financial year narrowed by 50 basis points to 14% from 14.5% in the previous three-month period and 14.9% a year ago. Last month, the IT company had acquired New Jersey-based Starfish Associates for $20.7 million (about Rs 173 crore).

In line with the industry trend of headcount reduction, Persistent Systems’ total employees declined during the quarter by 331 to 23,519.

Persistent Systems shares closed 1.73% higher at Rs 4,903 apiece on the BSE. The result was declared after market hours.