How do you see the results of Persistent Systems in the latest Sep-20 quarter?
Answer
Answer
One of India’s rising software names has done wonders under the leadership of Anand Deshpande. Its latest quarter results have been quite encouraging. Persistent announced 13.92% spike in top line sales for the Sep-20 quarter at Rs.1,008 crore.
Operating profit for the Sep-20 quarter was up 54.68% at Rs.122.43 crore while net profits were up 18.5% at Rs.102 crore on the back of better client mix. As a result, the operating profit margins expanded 325 basis points to 12.15% while net margins stood at 10.12%. This was on account of lower other income and higher tax incidence on the P&L account.
The company has a business model that is not too contingent on BFSI. If you look at the mix, technology vertical accounted for 45% of total revenues while BFSI accounted for just 30% with healthcare and life sciences constituting the balance revenue share.
With a better working capital matrix, the company improved its net cash from operations by 7 times to Rs.240 crore.