Persistent Systems drops on profit booking

Persistent Systems fell 5.24% to Rs 701.40 at 9:51 IST on BSE, with the stock sliding on profit booking after the company announced plans to organize its business around four key growth strategies.

The announcement was made after market hours yesterday, 21 March 2016.

Meanwhile, the S&P BSE Sensex was down 81.95 points or 0.32% at 25,203.42.

On BSE, so far 39,000 shares were traded in the counter as against average daily volume of 33,000 shares in the past two weeks. The stock hit a high of Rs 743 and a low of Rs 692.60 so far during the day. The stock had hit a 52-week low of Rs 562.50 on 12 February 2016. The stock had hit a 52-week high of Rs 820 on 20 May 2015. The stock had outperformed the market over the past one month till 21 March 2016, surging 13.75% compared with Sensex's 6.65% rise. The scrip had also outperformed the market in past one quarter, advancing 11.48% as against Sensex's 1.75% fall.

The mid-cap company has equity capital of Rs 80 crore. Face value per share is Rs 10.

Shares of Persistent Systems witnessed a sharp rally over the past two trading sessions. The stock surged 13.31% in the preceding two trading sessions to settle at Rs 740.20 yesterday, 21 March 2016, from its close of Rs 653.20 on 17 March 2016.

Persistent Systems announced plans to organize its business around four key growth strategies viz. Digital, IBM Alliance, Services and Accelerite. The Digital domain combines a technology partner ecosystem, solutions and a unique architecture for enterprise digital transformation or the transformation to become software-driven in business. The IBM Alliance focuses on the long-standing multi-dimensional relationship between Persistent Systems and IBM. The Services segment focuses on services for software and product development. The Accelerite division focuses on products that include business-critical infrastructure software for enterprises, telecom operators, and the public sector. Unique to Persistent, the company's product development and technology DNA drive all four growth strategies, the company said. The new structure along with new leadership responsibilities will be effective 1 April 2016, it added. Persistent Systems said it also plans to strengthen its corporate functions as part of corporate operations that will enable and accelerate the four growth strategies. Atul Khadilkar will be the President for corporate operations, it added.

On consolidated basis, Persistent Systems' net profit rose 7.84% to Rs 77.49 crore on 9.09% growth in net sales to Rs 592.07 crore in Q3 December 2015 over Q2 September 2015.

Persistent Systems is a global company specializing in software product and technology services.

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