Persistent systems reports better than expected Q4FY21 results by Mr. Jyoti Roy, Angel Broking Ltd
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Below are Quote on Persistent systems reports better than expected Q4FY21 results by Mr. Jyoti Roy - DVP- Equity Strategist, Angel Broking Ltd
Persistent Systems reported a 4.6% qoq growth in revenues to USD 152.8mn which was ahead of our expectations. The services business reported a better than expected growth of 8.6% QoQ to USD 130mn, while the IP business witnessed too registered a growth on a yoy basis. In rupee terms consolidated revenue increased by 3.5% qoq to ₹1,113.3 crore while gross profits increased by 2.2% qoq to ₹377 crore. Gross margins contracted by ~44bps qoq to 33.87% due to impact of wage hikes and drop in utilization rates. Consolidated operating profit for the quarter was up by 3.2% qoq while margins were down by ~10bps qoq to 16.9%. Net profit for the quarter was up by 6.4% qoq to ₹137.8 crore. Overall the numbers were ahead of our expectations on revenues and profit front while the company registered another quarter of strong deal wins at USD 246.5mn. Post the Q3 numbers we maintain our buy rating on Persistent Systems with a target price of Rs. 2350.
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