In This Article:
-
Revenue: $345.5 million, 18.4% year-on-year growth, 5.3% quarter-on-quarter growth.
-
EBIT Margin: 14%, translating to INR4,062.3 million, a 22.8% year-on-year increase.
-
Profit After Tax: 11.2% margin, INR3,250 million, 23.4% year-on-year growth.
-
Earnings Per Share: INR21.20, 18.3% year-on-year growth.
-
Return on Capital Employed: 38.1% for the quarter.
-
Total Contract Value (TCV): $529 million, with new bookings at $389.8 million.
-
Annual Contract Value (ACV): $348.3 million, with new bookings contributing $218.6 million.
-
Geographic Performance: North America grew 21.6%, India 11.7%, Europe declined 1.3% year-on-year but grew 6.6% quarter-on-quarter.
-
Industry Segment Growth: HLS grew 71.2%, BFSI grew 15.3% year-on-year.
-
Headcount: 23,237, a decline of 282 quarter-over-quarter.
-
Utilization Rate: Improved to 84.8% from 82.1% in the previous quarter.
-
Operating Cash Flow to PAT: 108.3% for Q2 FY25.
-
Effective Tax Rate: 25.2% for the quarter.
Release Date: October 22, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Persistent Systems Ltd (BOM:533179) reported a healthy revenue growth of 18.4% year on year and 5.3% quarter on quarter, reaching $345.5 million in Q2 FY25.
-
The company achieved an EBIT margin of 14%, translating to a 22.8% year on year increase in rupee terms.
-
The total contract value for the quarter was $529 million, with new bookings contributing $389.8 million.
-
Persistent Systems Ltd (BOM:533179) launched the T100 Program to enhance customer value and deepen client relationships, focusing on AI-driven innovation and ecosystem leadership.
-
The company achieved carbon neutrality for Scope 1 and Scope 2 emissions ahead of schedule, reflecting its commitment to sustainability.
Negative Points
-
Europe's revenue declined by 1.3% year on year, although it grew by 6.6% quarter on quarter.
-
The EBIT margin was impacted by wage hikes, policy rationalization, and ESOP issuance, resulting in headwinds of 210, 130, and 60 basis points respectively.
-
The software, hi-tech, and emerging verticals saw a marginal decrease of 0.5% year on year.
-
The company experienced a decline in headcount by 282 quarter over quarter, although utilization improved.
-
Persistent Systems Ltd (BOM:533179) faces potential seasonal headwinds in the second half of the fiscal year, similar to previous years.
Q & A Highlights
Q: How should we think about the growth trajectory from a sequential perspective over the next couple of quarters, considering the seasonally slow period? A: Sandeep Kalra, CEO, mentioned that while the second half is typically slower due to seasonality, Persistent Systems has a healthy order book and pipeline. They are confident in maintaining growth, despite potential fluctuations, by adapting to market demands.