Persistent Systems Q3 Results Review: Growth Converging Across Verticals, Says Motilal Oswal — Retains 'Buy'

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

Motilal Oswal Report

Persistent Systems Ltd. reported Q3 FY25 revenue of $360.2 million, up 4.3% QoQ in USD terms (estimate: 3.9%) and 4.6% in constant currency. Ebit margin stood at 14.9% (est. 14.4%). Ebit grew 12.2% QoQ/25.5% YoY to Rs 4.5 billion. Net profit came in at Rs 3.7 billion (est. Rs 3.5 billion), up 14.8% QoQ/30.4% YoY.

For 9MFY25, revenue/Ebit/PAT grew 20.3%/19.7%/21.5% versus 9MFY24. We expect revenue/Ebit/PAT to grow by 24.2%/27.3%/22.9% YoY in Q4 FY25. Trailing twelve months total contract value was $ 594.1 million, up 12% QoQ and 14% YoY (1.6 times book-to-bill). We value Persistent Systems at 55 times FY27E EPS. Reiterate Buy with a target price of Rs 7,600.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit 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 NDTV Profit.

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