Persistent Systems Q1 net up 9% to Rs 73 crore

IT firm Persistent Systems on Saturday said its net profit increased by 9% to Rs 73.28 crore for the quarter ended June 30, 2016.

This is against a net profit of Rs 67.21 crore for the same quarter last year.

Its revenues grew 40.2% to Rs 701.77 crore in the quarter under review from Rs 500.41 crore in the April-June 2015 period.

In dollar terms, the company's revenue was up 33.3% to $104.76 million.

"Most of the growth was driven by the IBM alliance. We had said it will help us increase our revenues in FY17 by up to 15-20% over FY16. We expect the second half of the year to see stronger growth in IP-led revenues," Persistent Systems chairman and managing director, Anand Deshpande told PTI.

Services revenues stood at $75.27 million, while IP-led revenues were at $29.49 million in the reported quarter.

Sequentially, profits were lower by 9.3% as the first quarter is usually a weak quarter. There was also an impact on account of visa expenses and costs related to the IBM partnership, he said.

North America accounted for 87% of the company's revenues, while Europe, India and rest of world accounted for 5.2%, 5.4% and 2.4%, respectively.

"We don't see any impact of Brexit as most of our revenues come from the US market," he added.

Persistent had 9,389 employees at the end of the first quarter. Its attrition rate stood at 16.7%.