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Persistent Systems gains after decent Q2 performance

Capital Market 

Persistent Systems rose 3.25% to Rs 1209.05 after the company reported a 13.31% growth in consolidated net profit to Rs 101.98 crore on 1.65% increase in revenue from operations to Rs 1,007.74 crore in Q2FY21 over Q1FY21.

EBITDA jumped 13.2% to Rs 165.80 crore in Q2FY21 over Q1FY21. In US dollar terms, revenue rose 3.9% to $136.09 million in Q2FY21 over Q1FY21.

Profit before tax (PBT) in Q2 September 2020 stood at Rs 137.51 crore, rising 12.7% from Rs 122.04 crore in Q1 June 2020. Current tax expense rose 1.25% to Rs 43.61 crore in Q2FY21 as against Rs 43.07 crore in Q1FY21.

Speaking on the Q2 performance, Dr Anand Deshpande, the founder, chairman and managing director (MD) of Persistent Systems, has said that: "It is tremendously gratifying that as we celebrate our 30th anniversary, we see renewal and rejuvenation of the energy and ingenuity that are hallmarks of Persistent. We hit significant milestones, for the first time ever exceeding Rs 1000 crore in revenue and Rs 100 crore in profit in one quarter. The growth we see across our business is the result of a shared passion through all of Persistent for innovation and helping our clients not just meet but exceed their business expectations. We are looking forward to the next phase of our growth journey, as Sandeep Kalra takes over the CEO role. I wish him all the best and look forward to continuing to work with him on the future of Persistent."

Meanwhile, the company announced the appointment of Sandeep Kalra as its new CEO, effective immediately.

Sandeep Kalra, the chief executive officer (CEO) and executive director (ED) of Persistent Systems, commented: "We delivered yet another strong quarter on the back of our strong Q1. Our continued focus on delivery excellence and expanding the value of our expertise across our accounts were the key drivers for this growth. Winning the 2020 ISG Star of Excellence speaks volumes about the strength of our strategy and client focus, as the award is based directly on client feedback. The trust placed in me by Anand and the board to be the CEO inspires me to lead the team to continued new heights and advance Persistent's growth and leadership in the market."

Persistent Systems is a global solutions company delivering digital business acceleration, enterprise modernization and digital product engineering for businesses across all industries and geographies.

The counter also witnessed some bit of value buying. The stock had slipped 9.84% in the past five sessions to end at Rs 1,171 on Friday, from its recent closing high of Rs 1,298.70 recorded on 16 October 2020.

On a year-to-date (YTD) basis, the stock has surged 80.36% while the benchmark S&P BSE Sensex lost 2.31% during the same period.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Mon, October 26 2020. 12:08 IST