Persistent Systems Q3 net profit at Rs 91.7 cr, announces Rs 225-cr buyback

IT firm Persistent Systems Monday reported a marginal rise in its consolidated net profit to Rs 91.71 crore during the December 2018 quarter as against Rs 91.67 crore in the year-ago period.

Besides, the Board also approved a buyback offer of up to Rs 225 crore at a share price of up to Rs 750 apiece, it said in a regulatory filing.

Persistent saw its revenue from operations growing 9.1 per cent to Rs 864.2 crore in the quarter, compared with Rs 791.9 crore in the third quarter of FY18.

"Our teams continue to leverage our Software 4.0 offering for incremental and iterative development...Businesses continue to march on their journey to become software driven which is helping us win customers," Persistent Systems Chairman and Managing Director Anand Deshpande said.

The Board has also declared an interim dividend of Rs 8 per share for 2018-19.

On the buyback, the company said it would buy back shares at a price not exceeding Rs 750 per share for an aggregate amount of up to Rs 225 crore from shareholders, excluding promoters and promoter group.

Promoter and promoter group held 30.47 per cent stake in the company on January 27, 2019.

"At the maximum buyback price and for the maximum buyback size, the indicative maximum number of equity shares bought back would be 30,00,000, which is 3.75 per cent of the total number of paid-up equity shares of the company," it added.

The public announcement setting out the process, timelines and other requisite details will be released in due course, it said.

Cash-laden Indian IT firms have been returning surplus cash on their books to shareholders by way of dividends and buybacks. Earlier this month, Infosys had announced a buyback offer of Rs 8,260 crore.