Growth trajectory to aid higher valuations for Persistent Systems

The company continues to outpace the industry. Healthcare, and banking, financial services and insurance (BFSI) were the two verticals contributing to growth

Midcap IT major Persistent Systems (PSYS) delivered a strong Q2FY25 performance which led to an 11 per cent uptick in its stock price on Wednesday. The company reported a 17 per cent growth in H1FY25 Annual Contract Value (ACV) and a 27 per cent growth in new ACV. There was margin consistency despite wage increases.

 

PSYS registered Q2FY25 revenue at $345.5 million (up 5.3 per cent Q-o-Q in dollar terms). In constant currency terms, growth was 5.1 per cent Q-o-Q. Operating profit grew 5.6 per cent Q-o-Q (18.6 per cent Y-o-Y) to Rs 480 crore and margin came in at