Last Updated on October 19, 2023 by BFSLTeam BFSLTeam
Table of Content
Introduction
Persistent Systems Limited, a multinational technology services company, specialises in software product development and technology services. The company was founded in 1990 and is headquartered in Pune, Maharashtra. Today, Persistent provides industry expertise and solutions across verticals, including insurance, healthcare, and life sciences, to a global clientele.
Persistent Systems Limited announced its financial results for Q2 of FY2023-24 on October 18th, which ended up being a strong quarter for the company. Here are the key facts and figures.
Additional Read: Q2 Results Dashboard
Key Financial Metrics
Performance Highlights
- The company reported a revenue growth of 3.9% QoQ and 17.7% YoY in the second quarter of FY2023-24, with a consolidated revenue of ₹ 2,411.67 Cr.
- Persistent Systems’ Profit Before Tax (PBT) for the second quarter grew by 20.4% YoY to ₹ 355.76 Cr, while the Profit After Tax (PAT) increased by 19.7% to ₹ 263.27 Cr.
- The company’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rose by 10.1% YoY to ₹ 405.16 Cr.
The growth in the company’s revenue was aided by robust order bookings and increased from ₹ 2,048.6 Cr during the same quarter the previous year. In terms of the US dollar, the company registered a revenue growth of 14.1% YoY and 3.1% QoQ in Q2 of FY2023-24.
The company’s PAT also rose by 19.7% YoY to ₹ 263.27 Cr in the second quarter of FY2023-24, compared to ₹ 220 Cr registered in the same quarter the previous year.
Persistent’s EBITDA in Q2 increased by 10.1% YoY to ₹ 405.16 Cr. However, the earnings were down by 4.2% QoQ.
The company also revealed that its proactive approach and flexibility allowed it to register its highest-ever total contract value (TCV), with more than US $ 475 million in bookings in the second quarter of FY2023-24.
Additional Read: Persistent Systems Share Price
Management Commentary
Major Announcements
- Mr. Sandeep Kalra, the Chief Executive Offer and Executive Director of Persistent Systems Limited revealed that the company was recognised as a Challenger in the 2023 Gartner® Magic Quadrant™ for Public Cloud IT Transformation Services.
- Mr. Kalra also announced that Persistent had won the Golden Peacock Award for Excellence in Corporate Governance for 2023.
Persistent Systems Limited QoQ Comparison: Consolidated Financial Figures
| Particulars | Q1 FY 2023-24 | Q2 FY 2023-24 |
| Total income | ₹ 2,342.82 Cr | ₹ 2,448.95 Cr |
| Revenue from operations | ₹ 2,321.17 Cr | ₹ 2411.67 Cr |
| Profit before tax | ₹ 307.05 Cr | ₹ 355.76 Cr |
| Profit after tax | ₹ 228.77 Cr | ₹ 263.27 Cr |
Persistent Systems Limited QoQ Comparison: Standalone Financial Figures
| Particulars | Q1 FY 2023-24 | Q2 FY 2023-24 |
| Total income | ₹ 1,573.47 Cr | ₹ 1,730.1 Cr |
| Revenue from operations | ₹ 1,544.53 Cr | ₹ 1,669.37 Cr |
| Profit before tax | ₹ 323.02 Cr | ₹ 388.96 Cr |
| Profit after tax | ₹ 243.55 Cr | ₹ 298.34 Cr |
Consolidated Statement of Assets and Liabilities
| Particulars | As of 30 Sep, 2023 |
| Total Non-current Assets | ₹ 3,133.45 Cr |
| Total Current Assets | ₹ 3,710.41 Cr |
| Total Assets | ₹ 6,843.91 Cr |
| Total Equity | ₹ 4,418.66 Cr |
| Total Non-financial liabilities | ₹ 3,914.54 Cr |
| Total Non-current Liabilities | ₹ 306.57 Cr |
| Total Current Liabilities | ₹ 2,118.68 Cr |
| Total Liabilities and Equity | ₹ 6,843.91 Cr |
Stock Performance
The market capitalisation of Persistent Systems Limited is currently ₹ 42,642 Cr. The results for the second quarter of FY2023-24 were announced on October 18th, and the share opened at a price of ₹ 5711.45. However, Persistent closed the day at ₹ 5683.70 on BSE, signifying a decrease of 0.49% from the previous day and a net change in the stock price of ₹ -27.75.
About the Company
Persistent Systems Limited (originally Persistent Systems Private Limited) was established in 1990 and converted into a PLC in 2007. Persistent combines technical expertise and industry experience to offer its clients a competitive edge. The company was recognised as one of the leading technology companies in the Deloitte Touche Tohmatsu Technology Fast 500 Asia Pacific 2009. Since 2020, Persistent has witnessed a staggering growth of 268%, and according to Brand Finance, it is the fastest-growing IT Services brand in India.
Sources:
https://www.persistent.com/wp-content/uploads/2023/10/press-release-q2fy24.pdf
