Persistent Systems Q3 FY25 Results: Revenue Grows to ₹3,062 Crore, Cons Profit at ₹464 Crore

Persistent Systems Q3 FY25 Results: Key Highlights/Quick Insights

• Revenue: ₹3,062 crore, a 20.6% YoY increase and a 5.7% sequential rise.

• Net Profit: ₹464 crore, up 11.3% YoY and 6.8% sequentially.

• EBITDA Margin: 18.3%, improving 150 basis points YoY.

• Order Book: Total Contract Value (TCV) of $520 million, with strong contributions from new deal wins.

• Segments: BFSI and Healthcare segments witnessed double-digit growth, contributing significantly to the overall performance.

Quarterly - Persistent Systems Q3 Results FY25

Persistent Systems delivered another robust quarter, with total revenue reaching ₹3,062 crore, marking a 20.6% YoY growth. Net profit rose to ₹464 crore, reflecting the company’s strong operational execution. EBITDA margin improved to 18.3%, driven by cost optimizations and a higher share of digital transformation projects.

Segment Highlights

1. Banking, Financial Services, and Insurance (BFSI):

   • Revenue: ₹1,023 crore

   • Growth: 18% YoY

   • Strong demand for digital banking solutions and modernization projects drove growth in this segment.

2. Healthcare and Life Sciences:

   • Revenue: ₹867 crore

   • Growth: 22% YoY

   • Increased investments in AI-led healthcare solutions contributed to the segment’s strong performance.

3. Software, Hi-Tech, and Emerging Industries:

   • Revenue: ₹1,172 crore

   • Growth: 15% YoY

   • Expansion in cloud computing and cybersecurity services boosted this segment.

Sector Expectations for Persistent Systems Q3 FY25 Results

The IT services sector remains robust, with growing demand for digital transformation and cloud-based solutions. Persistent’s strong performance in BFSI and Healthcare reflects its ability to capitalize on market opportunities.

Management Commentary

Sandeep Kalra, Chief Executive Officer and Executive Director said "We recorded our 19th sequential quarter of revenue growth, with a 4.3% QoQ and 19.9% YoY increase — highlighting the strength of our AI-led, platform-driven services strategy. We also declared an interim dividend of ₹20 per share.

This quarter, we achieved several significant milestones, including winning the prestigious 2024 ISG Star of Excellence™ Overall Award based on the voice of the customer, demonstrating our ability to re(AI)magine their businesses. Reaffirming our commitment to developing innovative solutions based on our own IP, we filed 20+ patents related to SASVA™, our AI-powered software development platform.

Financial Table – Consolidated Metrics

Source: BSE

Estimated: Persistent Systems Q3 Results FY24-25 Highlights, Revenue May Grow by 5%

Persistent Systems is anticipated to release its Q3 FY25 results on January 21, 2025. Analysts project a 5% quarter-on-quarter revenue growth, reaching approximately $362.7 million. In rupee terms, this translates to an estimated ₹3,060 crore, a 5.6% increase from the previous quarter. The Profit After Tax (PAT) is expected to rise by 7.7% sequentially, totaling around ₹350 crore. These projections suggest sustained growth momentum for the company in the current fiscal year.

Key Highlights:

• Revenue Growth: Estimated at 5% QoQ, reaching $362.7 million.

• Profit After Tax (PAT): Projected to rise by 7.7% QoQ to ₹350 crore.

• EBIT: Expected Earnings Before Interest and Tax (EBIT) of ₹447 crore, compared to ₹406.2 crore in the prior quarter.

• EBIT Margin: Anticipated to expand by 60 basis points to 14.6%.

• Constant Currency Growth: Revenue growth in constant currency terms is projected between 4.6% to 4.7% sequentially, including a 50 basis points contribution from recent acquisitions.

• Gross Margin: Likely to experience slight expansion due to operational efficiencies.

• EBITDA Margin: Expected to stabilize around 23%, reflecting consistent operational performance.

• Sector Performance: The company continues to see strong growth in its key sectors, including Software, Hi-Tech & Emerging Industries, Banking, Financial Services & Insurance, and Healthcare & Life Sciences.

Note: These figures are based on analyst estimates and are subject to change upon the official release of the company's financial results.

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