Net Profit of Persistent Systems Slumps around 12 per cent Q-o-Q in Q1 Results

Persistent system is a software product and technology innovation company. The company operates in three business segments: infrastructure & system, telecom & wireless and life science and healthcare.

Recently, Persistent systems announced its Q1FY16 results, the INR revenue of the company is slightly up by 0.6 per cent amounting to Rs 500.4 crore as  compared to Rs 498 crore in Q4FY15. The Dollar revenue slid down by 1.8 per cent to USD 7.86 crore as against USD 8 crore Q-o-Q. The telecom segment revenue slipped down to 14.9 per cent from 16.3 per cent. Infrastructure and Systems segment revenue decreased to 54.2 per cent from 54.5 per cent while Life Sciences segment revenue remained unchanged to 14.3 per cent and Financial Services revenue rose to 16.6 per cent from 14.9 per cent in Q1FY16 as compared to Q4FY15.

The total expenses of the company rose by 1.49 per cent to Rs 426 crore against Rs 420 crore including rise in employee cost and other expenses. The EBITDA decreased by 3.6 per cent to Rs 96.9 crore Q-o-Q. The other income rose by 8 per cent to Rs 19.8 crore, the finance cost remained constant during the quarter. The tax expenses increased by 35.51 per cent which resulted decrease in Net Profit of the company, the net profit declined by 11.61 per cent to Rs 67.22 crore against Rs 76.05 crore quarter on quarter basis.

“This was an important quarter for the company as we’ve seen our strategy for digital, based on data, interfaces and apps being widely embraced. Our focus on the how of digital and our offerings that include the template for digital transformation, established partnerships with market leaders and our ability to deliver through our IP with automation is helping us win new larger enterprise accounts. This quarter we signed one of our largest deals and it was digital,” said Dr. Anand Deshpande, Chairman and Managing Director, Persistent Systems.

During the quarter, Persistent Systems added 49 new customers across geographies and industries. The company has been selected by one of India’s largest Media Houses to immediately transform its operating model to digital media. Also Persistent systems entered into an agreement to acquire Aeopna Holdings Limited and its subsidiaries to extend its telecom services.

Today Persistent systems is trading around 3 per cent higher at 655.