Persistent Systems dips post Q1 revenue growth outlook

The stock dipped 9% to Rs 656 after the company said the revenue growth in dollar terms is expected to be marginally lower in the current quarter.

Shares of Persistent Systems have shed nearly 9% to Rs 656 on the BSE in early morning trades after the information technology (IT) company said that the revenue growth in dollar terms is expected to be marginally lower in the current quarter (April-June 2015), due to weakness in the product engineering business coupled with the quarterly variability associated with the company’s IP business.

“Some of the pre-cloud/ pre-internet software product companies, who are our customers are re-organizing their businesses and changing their priorities,” Persistent Systems said in business update for Q1 FY16.

Consequently, weakness in our current product engineering business coupled with the quarterly variability associated with the company’s IP business, could result in a marginally lower USD revenue for this quarter as compared to the previous quarter, the company added.

At 0936 hours, the stock was down 7% at Rs 669 on the BSE, with a combined 183,912 shares changed hands on the counter on the BSE and NSE.