Persistent Systems Q3 Results Review - All Round Beat; Lead Indicators Continue To Shine: Dolat Capital

Dolat Capital Report

Persistent Systems Ltd. posted healthy revenue of $264.4 million, up 3.5% QoQ in constant currency terms. (our estimate: 3%), despite impact of furlough, Q3 seasonality of lower working days and continued challenge in the top-two clients. Although top two accounts were soft, growth in top 2-50 stood at 7% QoQ.

Vertical-wise, growth was led by hi-tech growing 4.1% QoQ, followed by healthcare at 2.9% QoQ, and banking, financial services and insurance growing 2.8% QoQ.

Operating profit margin stood at 15.4%, up 78 bps QoQ and well ahead of our estimate of 14.6%. Margin expansion was led by better utilisation, improved freshers billability, intellecutal property revenue mix, and forex gains. Announced dividend per share of Rs 28.

Strong execution and robust annual contract value additions (up 15% on trailing twelve months basis) continues suggesting Persistent Systems would clock strong growth in FY24E as well.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime 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 author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.