ICICI Direct: Persistent Systems Shows Robust Performance Despite Challenges
(Photographer: John Taggart/Bloomberg)

ICICI Direct: Persistent Systems Shows Robust Performance Despite Challenges

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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.

ICICI Direct Report

Persistent Systems Ltd. reported healthy Q1 FY21 numbers. The company reported positive QoQ growth (up 3.1% QoQ) in dollar revenues versus QoQ decline in revenues across other IT companies.

Further, the Ebitda margin increased 100 basis points to 14.8% (including one-time Covid-19 related donation of Rs 7.4 crore). Adjusting for the one time outgo, the margins could have been higher by approximately 74 basis points.

Services revenues saw favourable growth in the past few quarters. This quarter also saw strong QoQ growth of 1.8% despite Covid related challenges. The company also has relatively less exposure to Covid-19 impacted verticals, boding well for revenue growth in coming years.

Further, large deals won ($50 million vendor consolidation deals), higher revenues from intellecutal property-led reseller business and normalisation of pricing in third quarter will further boost revenues in coming quarters.

Click on the attachment to read the full report:

ICICI Direct Persistent Q1FY21 Result Review.pdf

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