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Persistent Systems: A Fresh Start - Views on News from Equitymaster
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Persistent Systems: A Fresh Start
Oct 15, 2016

Persistent Systems has announced its 1QFY17 results. Net sales have grown by 3.6% QoQ and net profits have declined by 9.3% QoQ. Here is our analysis of the results.

Performance summary
  • Consolidated sales increased 3.6% QoQ in rupee terms. In US$ terms, the topline was up by 4.3% QoQ.
  • The operating profit was up by 1.9% QoQ; while the operating margin decreased to 15.1% in 1QFY17 compared to 15.3% recorded in 4QFY16.
  • The bottomline was impacted due to the sequential increase in operating costs as well as depreciation. The net profit decreased by 9.3% QoQ.

    Consolidated financial performance
    Rs m 4QFY16 1QFY17 Change
    Sales 6,771 7,018 3.6%
    Expenditure 5,733 5,960 4.0%
    Operating Profit (EBITDA) 1,038 1,057 1.9%
    Operating Profit Margin (%) 15.3% 15.1%
    Depreciation 256 343 34.0%
    EBIT 782 715 -8.6%
    Other Income/(Loss) 246 253 3.0%
    Profit Before Tax (PBT) 1,028 968 -5.8%
    Tax 220 235 7.0%
    Profit after Tax (PAT) 808 733 -9.3%
    Net Profit Margin 11.9% 10.4%
    No. of shares (m) 80.0
    Diluted earnings per share (Rs) 40.2
    P/E ratio (x)* 17.1

    *On a trailing 12 months basis

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Aug 22, 2017 (Close)

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