Persistent Systems Q2 net profit up 45% YoY to Rs 471 crore

Mid-tier IT services company Persistent Systems on Tuesday reported a 45% year-on-year increase in its September-quarter net profit, surpassing analyst estimates. At Rs 471.4 crore, net profit was 10.9% higher sequentially, largely helped by a cost reduction in the software licence of one customer and foreign currency gains, chief executive officer Sandeep Kalra said.

Revenue, which increased 23.5% y-o-y and 7.3% quarter-on-quarter (q-o-q) to Rs 3,580.7 crore, was supported by 30% y-o-y growth in its banking, financial services and insurance (BFSI) segment, and a 15.5% y-o-y expansion in the software, hi-tech and emerging industries verticals. The healthcare and life sciences vertical recorded 6.6% growth, its filings showed. In dollar terms, revenue rose 17.6% y-o-y and 4.2% q-o-q to $406.2 million. "We are seeing BFSI lead the growth based on the wins that we have. The future pipeline that we are seeing is followed by high tech...we have some nice wins in the quarter gone by," Kalra told analysts.