Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

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

War Profits
Revealing a Potential 33x
Opportunity in Defence




**Important: We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
**By submitting your email address, you also sign up for Profit Hunter, a Free-for-life newsletter from Equitymaster,
which offers the most profitable investing ideas in India.


AD

PERSISTENT SYSTEMS 2021-22 Annual Report Analysis
Sat, 25 Jun

PERSISTENT SYSTEMS has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

PERSISTENT SYSTEMS Income Statement Analysis

  • Operating income during the year rose 36.4% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 38.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.6% in FY22 as against 16.3% in FY21.
  • Depreciation charges decreased by 5.4% and finance costs increased by 104.3% YoY, respectively.
  • Other income grew by 43.3% YoY.
  • Net profit for the year grew by 53.2% YoY.
  • Net profit margins during the year grew from 10.8% in FY21 to 12.1% in FY22.

PERSISTENT SYSTEMS Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 41,879 57,107 36.4%
Other income Rs m 1,078 1,545 43.3%
Total Revenues Rs m 42,957 58,652 36.5%
Gross profit Rs m 6,830 9,477 38.7%
Depreciation Rs m 1,756 1,660 -5.4%
Interest Rs m 58 118 104.3%
Profit before tax Rs m 6,094 9,243 51.7%
Tax Rs m 1,588 2,339 47.3%
Profit after tax Rs m 4,507 6,904 53.2%
Gross profit margin % 16.3 16.6
Effective tax rate % 26.1 25.3
Net profit margin % 10.8 12.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Get Bullish: 3 Next-Generation Defence Stocks

PERSISTENT SYSTEMS Balance Sheet Analysis

  • The company's current liabilities during FY22 stood at Rs 14 billion as compared to Rs 8 billion in FY21, thereby witnessing an increase of 84.6%.
  • Long-term debt stood at Rs 3 billion as compared to Rs 44 million during FY21, a growth of 6226.6%.
  • Current assets rose 6% and stood at Rs 28 billion, while fixed assets rose 177% and stood at Rs 25 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 53 billion as against Rs 36 billion during FY21, thereby witnessing a growth of 49%.

PERSISTENT SYSTEMS Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 27,486 32,537 18.4
 
Current Liabilities Rs m 7,697 14,210 84.6
Long-term Debt Rs m 44 2,801 6,226.6
Total Liabilities Rs m 35,618 53,018 48.9
 
Current assets Rs m 26,703 28,339 6.1
Fixed Assets Rs m 8,915 24,679 176.8
Total Assets Rs m 35,618 53,018 48.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



PERSISTENT SYSTEMS Cash Flow Statement Analysis

  • PERSISTENT SYSTEMS's cash flow from operating activities (CFO) during FY22 stood at Rs 8 billion, an improvement of 14.8% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -10 billion, an improvement of 80.4% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs 2 billion, an improvement of 226% on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs 559 million from the Rs 519 million net cash flows seen during FY21.

PERSISTENT SYSTEMS Cash Flow Statement 2021-22

Particulars No. of months 12 12 % Change
Year Ending Mar-21 Mar-22
Cash Flow from Operating Activities Rs m 7,359 8,450 14.8%
Cash Flow from Investing Activities Rs m -5,417 -9,773 -
Cash Flow from Financing Activities Rs m -1,443 1,823 -
Net Cash Flow Rs m 519 559 7.6%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for PERSISTENT SYSTEMS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 90.3, an improvement from the EPS of Rs 59.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 3,266.3, stands at 36.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 7.7 times, while the price to sales ratio stands at 4.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 30.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Sales per share (Unadj.) Rs 547.9 747.2
TTM Earnings per share Rs 59.0 90.3
Diluted earnings per share Rs 59.0 90.3
Price to Cash Flow x 23.4 30.5
TTM P/E ratio x 32.5 36.2
Price / Book Value ratio x 3.4 8.0
Market Cap Rs m 93,627 261,576
Dividends per share (Unadj.) Rs 20.0 31.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for PERSISTENT SYSTEMS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 2.0x during FY22, from 3.5x during FY21. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 79.1x during FY22, from 106.2x during FY21. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company improved and stood at 21.2% during FY22, from 16.4% during FY22. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 26.5% during FY22, from 22.3% during FY21. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company improved and stood at 13.2% during FY22, from 12.8% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Current ratio x 3.5 2.0
Debtors’ Days Days 50 61
Interest coverage x 106.2 79.1
Debt to equity ratio x 0.0 0.1
Return on assets % 12.8 13.2
Return on equity % 16.4 21.2
Return on capital employed % 22.3 26.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how PERSISTENT SYSTEMS has performed over the last 5 years, please visit here.

PERSISTENT SYSTEMS Share Price Performance

Over the last one year, PERSISTENT SYSTEMS share price has moved up from Rs 2,621.4 to Rs 3,266.3, registering a gain of Rs 644.9 or around 24.6%.

Meanwhile, the S&P BSE IT Index is trading at Rs 28,147.6 (down 0.6%). Over the last one year it has moved down from 30,055.6 to 28,147.6, a loss of 1,908 points (down 6.3%).

Overall, the S&P BSE SENSEX is up 0.8% over the year.

(To know more, check out historical annual results for PERSISTENT SYSTEMS and quarterly results for PERSISTENT SYSTEMS)

Annual Report FAQs

What is the current share price of PERSISTENT SYSTEMS?

PERSISTENT SYSTEMS currently trades at Rs 3,737.1 per share. You can check out the latest share price performance of PERSISTENT SYSTEMS here...

What was the revenue of PERSISTENT SYSTEMS in FY22? How does it compare to earlier years?

The revenues of PERSISTENT SYSTEMS stood at Rs 58,652 m in FY22, which was up 36.5% compared to Rs 42,957 m reported in FY21.

PERSISTENT SYSTEMS' revenue has grown from Rs 31,698 m in FY18 to Rs 58,652 m in FY22.

Over the past 5 years, the revenue of PERSISTENT SYSTEMS has grown at a CAGR of 16.6%.

What was the net profit of PERSISTENT SYSTEMS in FY22? How does it compare to earlier years?

The net profit of PERSISTENT SYSTEMS stood at Rs 6,904 m in FY22, which was up 53.2% compared to Rs 4,507 m reported in FY21.

This compares to a net profit of Rs 3,403 m in FY20 and a net profit of Rs 3,517 m in FY19.

Over the past 5 years, PERSISTENT SYSTEMS net profit has grown at a CAGR of 20.9%.

What does the cash flow statement of PERSISTENT SYSTEMS reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of PERSISTENT SYSTEMS reveals:

  • Cash flow from operations increased in FY22 and stood at Rs 8,450 m as compared to Rs 7,359 m in FY21.
  • Cash flow from investments decreased in FY22 and stood at Rs -9,773 m as compared to Rs -5,417 m in FY21.
  • Cash flow from financial activity increased in FY22 and stood at Rs 1,823 m as compared to Rs -1,443 m in FY21.

Here's the cash flow statement of PERSISTENT SYSTEMS for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations4,2124,3233,5167,3598,450
From Investments-3,474-2,259-148-5,417-9,773
From Financial Activity-956-1,598-3,291-1,4431,823
Net Cashflow-117394161519559

What does the Key Ratio analysis of PERSISTENT SYSTEMS reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of PERSISTENT SYSTEMS reveals:

  • Operating profit margins witnessed a fall and down at 16.6% in FY22 as against 16.3% in FY21.
  • Net profit margins grew from 10.8% in FY21 to 12.1% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.1 as compared to 0.0 in FY21.

Here's the ratio/financial analysis of PERSISTENT SYSTEMS for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)14.916.313.816.316.6
Net Profit Margin (%)10.610.49.510.812.1
Debt to Equity Ratio (x)0.00.00.00.00.1

Equitymaster requests your view! Post a comment on "PERSISTENT SYSTEMS 2021-22 Annual Report Analysis". Click here!