Shares of Persistent Systems fell over 7% in early deals today after the IT firm reported a 10.2% rise in March quarter profit. Profit grew 10% to Rs 315.3 crore in Q4 against Rs 286.1 crore in the December 2023 quarter. The company recommended a final dividend of Rs 10 per share. Persistent Systems shares fell 7.62 percent to Rs 3591.62 on Monday against the previous close of Rs 3887.60 on BSE. Market cap of the firm slipped to Rs 55,626 crore on BSE. The management in a conference call today gave a guidance for flat margin in FY25, which disappointed the Dalal Street. Expectations were that the IT firm will raise guidance for FY25.
The stock opened higher at Rs 3899.55 . It has climbed 68.06% in a year and fallen 1.34% in the this year. It delivered multibagger returns of 285.40% and 1,046.85% in three years and five years, respectively.
Total 0.42 lakh shares of the firm changed hands amounting to a turnover of Rs 15.58 crore on BSE.
The stock has a beta of 0.2, indicating low volatility in a year.
Q4 revenue climbed 3.7% to Rs 2,590.5 crore against Rs 2,498.2 cr in the December 2023 quarter. EBIT margin in Q4 stood at 14.5% against 14.5% in Q3 of the previous fiscal.
Constant currency revenue growth came at 3.4% in Q4 compared to 3.10% in Q3 (estimates of 3.2%).
The company logged deal wins above $400 million for third quarter in a row.
The EBIT margin or operating margin came in flat at 14.5% in Q4 on a quarter-on-quarter basis. In 2023, the software services major had said it expected to improve margins by 200-300 basis over the next two to three years. One basis point is one-hundredth of a percentage point.
The company reported a total contract value (TCV) of $447.7 million in Q4, lower than the $475 million contract value in the previous quarter, which was then its highest-ever deal win.
Persistent Systems is engaged in the business of providing software products and technology services. The company’s segments include banking, financial Services, and insurance (BFSI), healthcare & life sciences, and technology companies and emerging verticals.