Persistent Systems shares down nearly 5 pc on muted guidance

Shares of Persistent Systems fell by nearly 5 per cent after the software firm said its revenue in dollar terms is likely to be muted for fourth quarter of FY'15.
The stock plunged 4.41 per cent to settle at Rs 770.40 on the BSE. During the day, it fell by 6.69 per cent to Rs 752.
At the NSE, the scrip tumbled 4.60 per cent to close the day at Rs 772.
In a filing to the BSE Persistent Systems today said, "Due to a change in the business priorities of one of our large customers in the product engineering segment, revenue growth in dollar terms is expected to be muted in Q4 FY'15. Margins would see some pressure due to ongoing investments in research & development and sales and marketing."

However, the company said that the demand environment continues to be favourable and is optimistic about market positioning, opportunities and growth plans for FY16.