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Below is quote on persistent System Q1FY22 results by Mr. Jyoti Roy - DVP- Equity Strategist, Angel Broking Ltd   

Persistent Systems reported a 9.2% qoq growth in revenues to USD 166.8mn which was ahead of our expectations. The services business reported a better than expected growth of 11.5% QoQ to USD 144.9mn, while the IP business witnessed registered a degrowth of 3.9% yoy. In rupee terms consolidated revenue increased by 10.5% qoq to ₹1,230 crore while gross profits increased by 9.4% qoq to ₹412.6 crore. Gross margins contracted by ~37bps qoq to 33.5% due to sharp increase in project related travel costs during the quarter. Consolidated operating profit for the quarter was up by 7.0% qoq while margins were down by ~50bps qoq to 16.4%. Net profit for the quarter was up by 9.8% qoq to ₹151.2 crore. Overall the numbers were way ahead of our expectations on revenues and profit front while the company registered another quarter of strong deal wins at USD 244.8mn. Post the Q4FY21 numbers we continue to maintain our positive stance on Persistent Systems with a target price of Rs. 3043.

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