In This Article:
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Revenue: USD 360.2 million in Q3 FY25, 19.9% year-on-year growth, 4.3% quarter-on-quarter growth.
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EBIT Margin: 14.9%, with a 25.5% year-on-year growth in EBIT.
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Profit After Tax (PAT): 12.2% for the quarter.
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Total Contract Value (TCV): USD 594.1 million, with new bookings at USD 333.6 million.
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Annual Contract Value (ACV): USD 428.3 million, with new bookings contributing USD 195.6 million.
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Top Customer Revenue Growth: Top 5 customers up by 31.7%, top 10 up by 22%, top 20 up by 18.7%, top 50 up by 21%.
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Geographic Revenue Growth: North America 21.1%, India 12.1%, Europe 10.3%, Rest of the World 66.5%.
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Industry Segment Growth: Healthcare and Life Sciences 52.6%, Banking and Financial Services 22%, Software, Hi-Tech, and Emerging 3.2%.
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Interim Dividend: INR 20 per share on face value of INR 5 per share.
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Headcount: 23,941 employees, an increase of 605 from the previous fiscal year.
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Attrition Rate: 12.6% trailing 12 months.
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Cash and Investments: INR 246.1 million as of December 31, 2024.
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DSO: Billed DSO at 64 days, unbilled DSO at 22 days.
Release Date: January 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Persistent Systems Ltd (BOM:533179) achieved a healthy revenue growth of 19.9% year on year and 4.3% quarter on quarter, reaching USD360.2 million in Q3 FY25.
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The company reported a strong EBIT margin of 14.9%, marking a 25.5% year-on-year growth.
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Persistent Systems Ltd (BOM:533179) has shown significant growth in its client engagement, with top five customer revenue up by 31.7% and an increase in the number of customers across various revenue buckets.
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The company has made strategic acquisitions, such as Arrka and Starfish, to bolster its AI capabilities and expand its service offerings.
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Persistent Systems Ltd (BOM:533179) has been recognized for its strong ESG performance, being included in the Dow Jones Sustainability World Index with a score of 85.
Negative Points
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The impact of furloughs on revenue was approximately 100 basis points, affecting the overall financial performance.
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There were headwinds in the quarter due to lower quantum of earn-out credit, resulting in a 100 basis point negative impact on margins.
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The company's utilization rate has increased to 87.4%, which may not be sustainable in the long term as it exceeds the comfortable band of 83% to 85%.
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Persistent Systems Ltd (BOM:533179) faces challenges in maintaining its SG&A costs, which are higher compared to peers, indicating potential areas for cost optimization.
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The company has not provided specific guidance on the impact of macroeconomic factors, such as changes in US administration, on its healthcare vertical, which could pose future risks.