Persistent Systems delivers yet another persistently strong quarter

Investors still favour IT stocks

Amid the broad market index Sensex trading down by 685 points (1.15 per cent), this relatively mid-size IT scrip has rallied by about 5 per cent on the BSE today. Persistent Systems Ltd, which is engaged in the business of providing digital solutions across the globe, has delivered yet another robust quarterly performance as its revenue grew by 10.4 per cent on a sequential basis and 38.7 per cent on a YoY to Rs 1,491.7 crore in Q3.  

The higher topline was backed by large deal wins in the quarter. The order booking for the quarter was at Rs 2,507 crore in total contract value (TCV) and at Rs 2,184.75 crore in annual contract value (ACV). The operating profit soared by 11.2 per cent sequentially and 52.7 per cent YoY to reach Rs 208.3 crore. The operating margin was almost the same as previous quarter at 14 per cent. 

The company recorded its net profit of Rs 176.4 crore, which jumped by 9.1 per cent QoQ and 45.9 per cent YoY. 

At 3:00 pm today, the stock is trading near Rs 4,303, up by 1.5 per cent on the BSE. It has a 52-week high of Rs 4,986.85 and a 52-week low of Rs 1,482.05.