Persistent Systems shares jump 5% on Rs 10 dividend announcement

Persistent Systems shares rise: Shares of IT company Persistent Systems climbed as much as 5.27 per cent to hit an intraday high of Rs 4,101.65 per share on Friday. 

The surge in share price came on the back of a divided announcement, coupled with Accenture’s Q3 performance, which met street expectations. 

The IT company declared a final dividend of Rs 10 for FY24. In an exchange filing, Persistent Systems said, “We wish to inform you that the Board of directors of the company, at its meeting held in April 2024, has recommended the final dividend of Rs 10 (Ten) per equity share of Rs 5 (Five) each for the financial year 2023-24.”

The Final Dividend, if approved by the Members at the 34th AGM scheduled to be held on Tuesday, July 16, 2024, will be paid to the members within 30 days of its declaration, Persistent Systems said.

Accenture financial performance

Accenture's Q3 revenue stood at $16.5 billion, up 1.4 per cent annually in constant currency (CC) terms. While revenue from Outsourcing was up 4 per cent CC Y-o-Y, it fell 1 per cent CC Y-o-Y for the Consulting segment.

Deal bookings, meanwhile, came at $21.1 billion, with Consulting bookings at $9.3 billion and Outsourcing at $11.8 billion, versus Bloomberg's estimate of $17.7 billion. 

The overall book-to-bill was about 1.3x, with Outsourcing and Consulting book-to-bill at 1.5x and 1.1x, respectively, in Q3FY24.

In terms of outlook, Accenture narrowed its FY24 revenue guidance to 1.5–2.5 per cent from 1–3 per cent as it anticipates a 70-bp forex headwind. However, margin guidance remained unchanged.

Despite this, the IT index is buzzing in trade today. Nifty IT zoomed as much as 2.68 per cent in intraday deals.

Headquartered in Pune, Persistent Systems is a multinational technology services company. The IT major is primarily engaged in cloud computing, internet of things, endpoint security, big data analytics and software product engineering services.

The market cap of the company is Rs 61,833.36 crore, according to Bombay Stock Exchange (BSE).

At 11:50 AM, shares of Persistent Systems were trading 3 per cent higher at Rs 4,012.80 per share. In comparison, BSE Sensex was trading 0.19 per cent lower at 77,335 levels.