BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Persistent Systems Ltd. posted a strong Q4 FY22, with revenue growth (U.S. dollar) of 9.1% QoQ (120 basis points above our estimate; 6.8% QoQ organic) and 17.2% Ebitda margin (estimate: 16.6%).
It reported a total contract of $361 million (up 8% QoQ), with 54% new business TCV.
Employee additions at 1,610 was strong, despite elevated attrition rate of 26.6% (down 30 bps QoQ) in Q4 FY22.
Persistent Systems maintained strong services performance (up 14.7% QoQ), aided by inorganic impact and migration of intellectual property revenues to higher margin time and material model. This resulted in IP business declining 27% QoQ; further, it also impacted top account growth adversely (down 13% QoQ).
Persistent Systems expects the IP business to return to growth in FY23 after bottoming out this quarter.
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