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

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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:

Centrum Broking Persistent System Q1FY21 Result Review.pdf


This 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.

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