IT services firm Persistent profit up 25.1%, annual revenue crosses $1 bn

Pune-based company announces dividend of Rs 12 per equity share and special dividend of Rs 10 per equity share

IT services firm Persistent Systems reported on Tuesday a net profit of Rs 251.5 crore in Q4 FY23, up 25.1 per cent year-on-year and helped by steady growth in key segments.

Revenue grew 37.6 per cent to Rs 2,254.4 crore in the quarter, said the company in a regulatory filing. It met the Bloomberg estimate of Rs 2,253.9 crore, but net profit was a miss compared to estimated Rs 268.8 crore. Revenue grew 3.9 per cent on a sequential basis.

Revenue from the software, high technology, and emerging industries jumped 48.5 per cent in Q4 FY23. Banking, Financial Services and Insurance (BFSI) revenue grew 26 per cent in a quarter hit by the banking crisis in the United States and Europe. Healthcare and Life Sciences, another key segment for the firm grew 20.1 per cent YoY.

The order booking for the quarter ended on March 31, 2023, was at $421.6 million in Total Contract Value (TCV) and at $310.4 million in Annual Contract Value (ACV) terms. The Earnings before interest and taxes (EBIT) margin for the quarter was flat at 15.37 per cent.

The Pune-based company made a net profit of Rs 9,21 crore in FY23, growing 33.4 per cent from Rs 6,90.3 crore the previous year. Annual revenue grew 46.2 per cent to Rs 8,350.6 crore from Rs 5,710.7 crore in FY22. In constant currency terms, the company has crossed $1 billion in annual revenue for the first time.

“Fiscal year 2023 was momentous for Persistent as we achieved several key milestones including attaining $1 billion in annual revenue and inclusion in three key indices of the National Stock Exchange of India including the Nifty IT index, among others. We have been nimble, proactive, and disciplined, allowing us to build a healthy booking pipeline and maintain competitive advantage,” said Sandeep Kalra, chief executive officer and executive director, Persistent.

The company’s board has recommended a final dividend of Rs 12 per equity share and a special dividend of Rs 10 per equity share with a face value of Rs 10 each for FY 2022-23. The special dividend was recommended for achieving $1 billion in annual revenue and will be paid along with the final dividend.

The company’s headcount stands at 22,889, up 23.1 per cent YoY.