Persistent Systems shares surged as much as 18.96 per cent on Monday ahead of the company’s investor and analyst call which is scheduled later in the day. Traders believe Persistent Systems could provide optimistic business guidance for the next fiscal year ended March 2017. Company expects to garner additional 15-20 per cent revenue in FY2017.
Shares of Persistent Systems closed 10.52 per cent up at Rs 740.20. The scrip opened at Rs 690 and had touched a high and low of Rs 796.75 and Rs 690, respectively, in trade so far.
Last week, a business daily reported that Persistent Systems has launched a specialised engineering service for the IBM Watson Internet of Things (IoT) platform towards improving and transforming engineering processes and integrating new specialised consulting services.
According to Antique Stock Broking, IBM tie-up could “significantly” drive FY2017 estimates.
For the financial year ended March 2015, the company reported a consolidated net profit of Rs 290.63 crore, up 16.59 per cent, against Rs 249.28 crore last year.
In the past one year, the share price of Persistent Systems slid 13.59 per cent to Rs 669.75 till March 18, whereas BSE Sensex declined 12.82 per cent during the same period.
(With inputs from Reuters)