Persistent Systems falls 11% on weak March quarter outlook

The stock dipped 11% to Rs 697 on the BSE after the company said it is expecting a decline in IP revenues in Q4FY18, which will impact revenue and EBITDA margin for the quarter.

Persistent Systems has dipped 11% to Rs 697 on the BSE after the information technology (IT) company said it is expecting a decline in IP revenues in fourth quarter of current fiscal (Q4FY18), which will impact revenue and EBIDTA (earnings before interest, taxes, depreciation, and amortization) margin for the quarter.

The company said it expect the sequential drop in IP revenues to be about US$ 8 million for Q4FY18.

“IP revenues have seasonality and tend to fluctuate on a sequential quarter-on-quarter basis. While we continue to see good overall growth for our IP revenue portfolio, relative quarter-on-quarter decline