Q1 Results: Persistent Systems Sees Robust Pipeline, Expansions To Drive Growth
Newer segments such as healthcare and technology will drive growth for Persistent Systems going forward, says its founder.
Persistent Systems Ltd. expects its robust pipeline, especially in newer segments such as healthcare and technology, to drive growth for the information technology services company going forward.
“Most of the newer business we are getting is not from the staffing business, but related to the technology investments we have made,” Anand Deshpande, its founder, chairman and managing director, told BloombergQuint in a post-earnings interaction.
The company will also use some of its Rs 1,200 crore cash in hand for acquiring smaller businesses in healthcare, data and machine learning, and by expanding across geographies, he said.
Persistent System’s reported 18.5 percent jump in net profit sequentially in the quarter ended June driven by licence sales.
Here are the other key highlights from its first quarter earnings (QoQ):
- Revenue up 10.9 percent to Rs 834.2 crore, above Bloomberg consensus estimates of Rs 811 crore.
- Net profit up 18.5 percent to Rs 87.3 crore, above Bloomberg consensus estimates of Rs 85.11 crore.
- Earnings before interest and tax up 50.7 percent to Rs 100 crore.
- EBIT margin at 12 percent versus 8.8 percent.
Shares of the company rose as much as 4.44 percent to Rs 871.60 during morning trade today.
Watch the full interaction here: