Persistent confident of maintaining growth momentum in FY23

FY21 and FY22 were about cloud adoption and digital transformation or improving lines of revenues.

Persistent Systems Sapre
The company does not expect reduction spending FY24 launches that clients are working on.

IT company Persistent Systems is confident of maintaining growth momentum in FY23. Sunil Sapre, executive director and chief financial officer, said the digital transformation journey that its clients have embarked on is not going to stall despite challenging external factors.

The company does not expect reduction spending FY24 launches that clients are working on. FY21 and FY22 were about cloud adoption and digital transformation or improving lines of revenues.

Now, given the macro sit- uation, the focus is shifting to cost optimisation, he said. Clients are looking at cost optimisation, which is an opportunity for companies like Persistent, as this could be achieved mostly through outsourcing and offshoring, Sapre said.

Adoption of cloud and digital transformation is a long journey and clients are in the lift and shift from premise to cloud phase, and the next stage would be about industry-specific value additions, Sapre said.

Persistent is already active in Salesforce and IBM, which was its largest customer. With two recent acquisitions, Persistent now has presence in the Google and Microsoft cloud ecosystem. Persistent acquired Data Glove and launched the new Microsoft Business Unit with a focus on Azure Cloud. The acquisition of Media Agility gives Persistent a foothold in the Google Cloud ecosystem.

Persistent on Thursday reported a 39.90% year-on-year growth in it’s net profit to Rs 211.61 crore and a 52.70% growth in revenues to Rs 1,878.11 crore for the June quarter. The company had its highest-ever order booking of $394 million in total contract value for the quarter ended June 22.

The company added 3,000 people to the team during the quarter, taking the total employee strength to 21,500. After a year of lateral hires, Persistent Systems would be hiring freshers during first half of FY23, Sapre said.

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

Photos