Persistent Systems Q1 Results: Operating performance meets estimates but CC revenue a miss

Persistent Systems Ltd. reported results for the June quarter on Wednesday, July 23, that were in-line with analyst expectations across parameters.The company’s revenue in US Dollar terms for the quarter stood at $389.7 million, which was in-line with the CNBC-TV18 poll of $391 million. On a sequential basis, Persistent’s revenue in US Dollar terms grew by 4%.
Revenue in rupee terms increased by 2.8% from the March quarter to ₹3,333.5 crore. The number was also largely in-line with the CNBC-TV18 poll estimate of ₹3,353 crore.
Earnings Before Interest and Tax stood at ₹517.7 crore, a growth of 2.5% from the previous quarter and also met the CNBC-TV18 poll estimate of ₹525 crore.
EBIT margins for the period narrowed by 10 basis points from March to 15.5% from 15.6%. A CNBC-TV18 poll had pegged the figure at 15.7%.Persistent’s Constant Currency Revenue growth for the quarter stood at 3.3%, which was marginally lower than the 3.8% growth that the CNBC-TV18 poll had projected.

Deal wins for the quarter stood at $520.8 million in Total Contract Value (TCV) terms, Persistent said in a post-earnings statement.

The contribution of the top 10 clients to Persistent’s overall revenue stood at 42%, which is the same as the 42.2% figure in March.

The number of large clients contributing to more than $5 million in annual revenue stood at 56, from 55 in March.

Shares of Persistent Systems ended near the lows of the day on Wednesday ahead of the earnings announcement. The stock declined 2% to end at ₹5,603. The stock had declined 8% in the one month prior to the results.