X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Persistent Systems: An Excellent Performance - Views on News from Equitymaster
The India Letter
  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Persistent Systems: An Excellent Performance
Mar 7, 2017

Persistent Systems has announced its 3QFY17 results. Sales have grown by 5.9% QoQ and net profits have increased by 18.5% QoQ. Here is our analysis of the results.

Performance summary
  • Consolidated sales increased 5.9% QoQ in rupee terms. In US$ terms, the topline was up by 4.6% QoQ.
  • The operating profit was up by 7.1% QoQ; while the operating margin increased to 15.9% in 3QFY17 compared to 15.7% in 2QFY17.
  • Profit before tax was up 13.5% QoQ. The bottomline was boosted by a 30.6% QoQ jump in other income. The bottomline was up 18.5% QoQ. The net margin improved to 10.4%.
  • The interim dividend was Rs 6 per share. The corresponding interim dividend in 3QFY16, was Rs 5 per share.

    Consolidated Financial Performance
    Rs m 2QFY17 3QFY17 Change 9MFY16 9MFY17 Change
    Sales 7,040 7,455 5.9% 16,352 21,513 31.6%
    Expenditure 5,932 6,269 5.7% 13,459 18,161 34.9%
    Operating Profit (EBITDA) 1,108 1,187 7.1% 2,893 3,352 15.9%
    Operating Profit Margin (%) 15.7% 15.9% 17.7% 15.6%
    Depreciation 367 387 5.4% 726 1,096 51.1%
    EBIT 741 800 7.9% 2,167 2,256 4.1%
    Other Income/(Loss) 243 318 30.6% 588 814 38.6%
    Profit Before Tax (PBT) 984 1,118 13.5% 2,755 3,070 11.4%
    Tax 250 299 19.8% 713 784 9.9%
    Profit after Tax (PAT) 735 819 11.4% 2,042 2,287 12.0%
    Other comprehensive income -83 -46 166 -63
    Net Profit 652 773 18.5% 2,208 2,224 0.7%
    Net Profit Margin 9.3% 10.4% 13.5% 10.3%
    No. of shares (m) 80.0
    Diluted earnings per share (Rs) 41.4
    P/E ratio (x)* 14.9
    *On a trailing 12 months basis

    Revenue Break-up
    Rs m 2QFY17 3QFY17 Change
    By Industry
    Services 3,281 3,273 -0.2%
    Digital 1,070 1,260 17.7%
    Alliance 2,070 2,281 10.2%
    accelerite 620 641 3.5%
    By Geography
    North America 6,012 6,456 7.4%
    Europe 429 395 -8.0%
    India 394 410 4.0%
    Rest of the World (RoW) 204 194 -5.1%
    By Service Line
    ISV 3,126 3,169 1.4%
    Enterprise 1,957 2,170 10.8%
    IP Led 1,957 2,117 8.2%
To Read the Full Story, Subscribe or Sign In



DISCLOSURES UNDER SEBI (RESEARCH ANALYSTS) REGULATIONS, 2014
INTRODUCTION:
Equitymaster Agora Research Private Limited (hereinafter referred to as "Equitymaster"/"Company") was incorporated on October 25, 2007. Equitymaster is a joint venture between Quantum Information Services Private Limited (QIS) and Agora group. Equitymaster is a SEBI registered Research Analyst under the SEBI (Research Analysts) Regulations, 2014 with registration number INH000000537.

BUSINESS ACTIVITY:
An independent research initiative, Equitymaster is committed to providing honest and unbiased views, opinions and recommendations on various investment opportunities across asset classes.

DISCIPLINARY HISTORY:
There are no outstanding litigations against the Company, it subsidiaries and its Directors.

GENERAL TERMS AND CONDITIONS FOR RESEARCH REPORT:
For the terms and conditions for research reports click here.

DETAILS OF ASSOCIATES:
Details of Associates are available here.

DISCLOSURE WITH REGARDS TO OWNERSHIP AND MATERIAL CONFLICTS OF INTEREST:
  1. 'subject company' is a company on which a buy/sell/hold view or target price is given/changed in this Research Report
  2. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have any financial interest in the subject company.
  3. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have actual/beneficial ownership of one percent or more securities of the subject company at the end of the month immediately preceding the date of publication of the research report.
  4. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have any other material conflict of interest at the time of publication of the research report.
DISCLOSURE WITH REGARDS TO RECEIPT OF COMPENSATION:
  1. Neither Equitymaster nor it's Associates have received any compensation from the subject company in the past twelve months.
  2. Neither Equitymaster nor it's Associates have managed or co-managed public offering of securities for the subject company in the past twelve months.
  3. Neither Equitymaster nor it's Associates have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
  4. Neither Equitymaster nor it's Associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
  5. Neither Equitymaster nor it's Associates have received any compensation or other benefits from the subject company or third party in connection with the research report.
GENERAL DISCLOSURES:
  1. The Research Analyst has not served as an officer, director or employee of the subject company.
  2. Equitymaster or the Research Analyst has not been engaged in market making activity for the subject company.
Definitions of Terms Used:
  1. Buy recommendation: This means that the subscriber could consider buying the concerned stock at current market price keeping in mind the tenure and objective of the recommendation service.
  2. Hold recommendation: This means that the subscriber could consider holding on to the shares of the company until further update and not buy more of the stock at current market price.
  3. Buy at lower price: This means that the subscriber should wait for some correction in the market price so that the stock can be bought at more attractive valuations keeping in mind the tenure and the objective of the service.
  4. Sell recommendation: This means that the subscriber could consider selling the stock at current market price keeping in mind the objective of the recommendation service.
Feedback:
If you have any feedback or query or wish to report a matter, please do not hesitate to write to us.

Become A Smarter Investor In
Just 5 Minutes

Multibagger Stocks Guide 2017
Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

PERSISTENT SYSTEMS SHARE PRICE


Aug 23, 2017 (Close)

TRACK PERSISTENT SYSTEMS

  • Track your investment in PERSISTENT SYSTEMS with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MORE ON PERSISTENT SYSTEMS

PERSISTENT SYSTEMS 8-QTR ANALYSIS

Detailed Quarterly Results With Charts

COMPARE PERSISTENT SYSTEMS WITH

MARKET STATS