- 19 Jul 2024
- ICICI Securities
PERSISTENT: ANOTHER STRONG QUARTER
PERSISTENT - 5880 Change: -123.30 (-2.05 %)News: Persistent Systems in Q1FY25 reported revenue of US$ 328.2 mn, up 5.6% QoQ and 16% YoY in both US$ & CC terms. In rupee terms its revenue grew by 5.7% QoQ & 17.9% YoY to ₹2,737.17 crore. Segment wise Hi-tech (42.5% of mix), BFSI (30.8% of mix) & Healthcare (26.7% of mix) reported YoY growth of 2.5%, 7.3% & 66.5% respectively. The EBIT margin declined by 50 bps sequentially to 14% and in absolute terms it reported EBIT of ₹384.02 crore, up 2.6% QoQ. The company won TCV of US$ 462.8 mn, up 3.4% QoQ/21.7% YoY. The attrition rate increased by ~40bps to 11.9% and the company declared a dividend of ₹10.
Views: Persistent has reported another strong quarter, aided by AI-led, platform driven services approach. Key will commentary on growth ahead. Furthermore , margin has been muted and way ahead will be another key monitorable.
Impact: Positive