Persistent Systems Q4 Results: Revenue Tops $1 Billion In FY23, Margin Flat
Net profit of Persistent Systems rose 5.69% to Rs 251 crore in Q4 FY23, on the back of revenue that rose 3.92% to Rs 2,255 crore.
Persistent Systems Ltd.'s revenue topped the billion-dollar mark in 2022–23 amid flat margin growth.
The Pune-based IT services firm saw its revenue rise 3.92% over the previous quarter to Rs 2,254.47 crore in the three months ended March 31, according to an exchange filing on Tuesday. That compares with the Rs 2,253.93-crore consensus estimate of analysts tracked by Bloomberg.
Persistent Systems Q4 Results: Key Highlights (QoQ)
Revenue up 3.92% at Rs 2,254.5 crore (Bloomberg Estimate: Rs 2,253.9 crore)
EBIT up 4.02% at Rs 346.6 crore (Bloomberg Estimate: 350.3 crore)
EBIT margin at 15.37% versus 15.35% (Bloomberg Estimate: 15.54%)
Net profit up 5.69% at Rs 251.5 crore (Bloomberg Estimate: Rs 268.8 crore)
For the full fiscal year, revenue increased 46.20% year-on-year to Rs 83,505 crore. In dollar terms, it was up 35.3% to $1.036 billion. The total contract value—or new deal wins—stood at $421.6 million. The annual contract value was $310.4.
"FY23 was momentous for Persistent as we achieved several key milestones, including $1 billion in annual revenue and inclusion in three key indices of the NSE including the Nifty IT index," Sandeep Kalra, chief executive officer at Persistent Systems, said in a statement. "As we move to the next phase of growth, we will continue to strengthen our partner ecosystem, maintain operational rigour, and deepen our capabilities to scale our digital engineering expertise and drive business value for our clients."
The company’s board of directors has recommended a final dividend of Rs 12 per share for FY23 and a special dividend of Rs 10 per share for achieving $1 billion in annual revenue. Including the interim dividend of Rs 28 per share declared in January, the company’s payout stands at Rs 50 per share.
The growth delivered by Persistent Systems—despite multiple bank collapses in the US and Europe, and macro woes globally—came on the back of a steady increase in revenue in the key business verticals. In the January-March quarter:
BFSI revenue rose 4.74% QoQ to Rs 729.05 crore.
Healthcare and Life Sciences grew 7.21% to Rs 443.82 crore.
The software vertical clocked Rs 1,081.59 crore—up 2.09%.
On Monday, shares of Persistent Systems rose 3.90% to Rs 4,468.95 apiece on the NSE, even as the benchmark Nifty 50 ended the day 0.68% higher at 17,743.70 points. The quarterly results were announced after market hours.
