Persistent Systems: Persistent Systems Q1 net profit rises 33.9% on year to Rs 306 crore

The company’s revenue from operations increased 17.9% year-on-year to Rs 2,737.17 crore from Rs 2,321,17 crore. Quarter-on-quarter increase in revenue was 5.6% from Rs 2,590.5 crore in the January-March period.

Persistent Systems’ core business – software, hi-tech and emerging industries – grew slower at 4.1%, as compared to the banking, financial services and insurance (BFSI) sector, which grew 8.9% to Rs 843.15 crore, boosting its overall revenue. The order booking for the quarter improved to $316.8 million in total contract value (TCV) from $462.8 million.

Reporting the 17th consecutive quarter of revenue growth, chief executive Sandeep Kalra said, “We have pivoted to an AI-led, platform-driven services approach, deepening our hyperscaler partnerships and developing a suite of innovative solutions.”

In dollar terms, revenue increased 14.3% year-on-year to $1.2 billion while profit was up 16% to $328.2 million.

The company’s operating margin in the first quarter of this financial year narrowed by 50 basis points to 14% from 14.5% in the previous three-month period and 14.9% a year ago. Last month, the IT company had acquired New Jersey-based Starfish Associates for $20.7 million (about Rs 173 crore).

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In line with the industry trend of headcount reduction, Persistent Systems’ total employees declined during the quarter by 331 to 23,519.Persistent Systems shares closed 1.73% higher at Rs 4,903 apiece on the BSE. The result was declared after market hours.