Persistent Systems said seasonality and challenges faced by its largest customer dragged down the company's earnings in the quarter ended March.
“Our largest customer has been going through certain challenges and that has in turn reflected in our financials,” Chairman and Managing Director Anand Deshpande told BloombergQuint in an interview. “There was also significant seasonality in the quarter's revenue with respect to our intellectual property segment. Some of the revenue-sharing agreements tend to be weaker in even quarters.”
Still, Deshpande is optimistic that the company will report “fairly good” performance next year under newly-appointed Chief Executive Officer Christopher O'Connor and technology head Sandeep Kalra.
Key Highlights
(Quarter-On-Quarter)
- Profit declined 8 percent to Rs 84.4 crore.
- Revenue fell 3.7 percent to Rs 832 crore.
- Earnings before interest and tax fell 21 percent to Rs 83.1 crore.
- EBIT margin stood at 10 percent against 12.3 percent.
Shares of Persistent Systems today closed 0.3 percent lower from their previous close.
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