Persistent Systems has rallied nearly 8% at Rs 858, extending its over 13% rally in past seven trading sessions on the Bombay Stock Exchange (BSE).
Shares of IT consulting and software firm currently trading at its new high, has outperformed the market by surging 23% from Rs 700 on October 17, after reporting a better than expected revenue growth and margin expansion largely driven by IP-led revenue. The benchmark index has gain 0.75%, while IT index was down 0.45% during the same period.
The company had reported 8.6% quarter-on-quarter (qoq) growth in dollar revenues at $68.5 million for the quarter ended September 2013 (Q2) led by robust 38% qoq growth in IP-led revenues.
In Indian rupee (INR) terms, revenues grew 21% qoq at Rs 432 crore, while net profit by 6.4% qoq at Rs 60.79 crore during the recently concluded quarter.
The company’s EBITDA margin grew substantially by around 420bp qoq to 26.0%, aided by strong volume growth as well as INR depreciation.
Shashi Bhusan, analyst at Prabhudas Lilladher expects, the company’s revenue from IP-led business to provide cushion against currency appreciation.
“We expect Persistent to deliver revenue stronger than NASSCOM guidance of 12-14% for FY14. We reiterate ‘BUY’ rating, with a revised target price of Rs 850,” analyst said in a report dated October 21.
Shares of IT consulting and software firm currently trading at its new high, has outperformed the market by surging 23% from Rs 700 on October 17, after reporting a better than expected revenue growth and margin expansion largely driven by IP-led revenue. The benchmark index has gain 0.75%, while IT index was down 0.45% during the same period.
The company had reported 8.6% quarter-on-quarter (qoq) growth in dollar revenues at $68.5 million for the quarter ended September 2013 (Q2) led by robust 38% qoq growth in IP-led revenues.
In Indian rupee (INR) terms, revenues grew 21% qoq at Rs 432 crore, while net profit by 6.4% qoq at Rs 60.79 crore during the recently concluded quarter.
The company’s EBITDA margin grew substantially by around 420bp qoq to 26.0%, aided by strong volume growth as well as INR depreciation.
Shashi Bhusan, analyst at Prabhudas Lilladher expects, the company’s revenue from IP-led business to provide cushion against currency appreciation.
“We expect Persistent to deliver revenue stronger than NASSCOM guidance of 12-14% for FY14. We reiterate ‘BUY’ rating, with a revised target price of Rs 850,” analyst said in a report dated October 21.
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