Persistent Q1 net dips 13%, revenues up at Rs 171 cr

IT company Persistent Systems today reported a 13% decline in its net profit of Rs 29.14 crore for the first quarter ended June 30, 2011.

The company had earned a net profit of Rs 33.41 crore for the corresponding quarter in 2010-11.

However, its total revenue was up by 20% at Rs 171.31 crore for the first quarter of this fiscal compared to Rs 145.46 crore in the same period last fiscal.

"FY12 has started on a very positive note for Persistent. We achieved $50 Million revenue for the first time in a quarter, and this is an important landmark for the Company."

"We also signed a couple of strategic partnerships in the life sciences and enterprise collaboration domain this quarter and continued our expansion in Europe and APAC," Anand Deshpande, chairman and managing director, Persistent Systems said in a statement.

The company also announced re-appointment of Deshpande as managing director for five years with effect from April 1, 2012 on a basic salary in the range of Rs 2 lakh to Rs 4 lakh per month and maximum bonus of 3% of the net profit payable quarterly.

This is apart from allowances, perquisities and other benefits.

Chief operating officer Nitin Kulkarni was given additional charge of executive director at the annual general meeting held today.

The company shares today closed at Rs 372.6 a piece on the BSE, down 2.1% from its previous close.