Centrum Broking: Persistent Systems’ Well Poised For Revenue Growth Leadership In FY21

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Centrum Broking Report.Persistent Systems Ltd. revenues for Q1 FY21 came at 131 million U.S. dollar up 3.1% QoQ (our estimates 127 million U.S. dollar).Volume growth for quarter stood at 2.9% (Onsite up 7% QoQ and Offshore up 2.2% QoQ). Blend pricing dropped by 1% QoQ (Onsite down 1.4% QoQ and Offshore down 2.7% QoQ).Hence, linear business grew by 1.9% QoQ.Technology Services unit (77.1% of total revenues) saw 2.2% QoQ revenue growth. IBM alliance (22.9% of total revenues) revenues grew by 6.4% QoQ helped by reseller business. Reseller business revenues for Q1 FY21 stood at 5.2 million U.S. dollar (versus 2.2 million U.S. dollar in Q4 FY20).Banking financial services and Insurance/Healthcare/ Technology and Hitech vertical revenues were up 4.8/5.8/1% QoQ and accounted for 31.8/19.7/48.5% of total revenues.Top account (IBM) revenue declined by 4.9% QoQ and accounted for 17.7% for total revenues. Top two - five accounts revenues grew by solid 6.8% QoQ. Non top 10 account revenues grew by 5% QoQ.Hence, profile of growth is strong and further moderation of IBM as a % of total revenues can be seen as positive in our view..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Centrum Broking: Persistent Systems’ Well Poised For Revenue Growth Leadership In FY21

Persistent Systems’ growth profile is strong, reduced reliance on IBM for revenue seen as positive, Centrum Broking says.

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