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.
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