Persistent Systems will not implement salary cuts, large-scale layoffs or furloughs but they may, at best, be deferring the wage hikes scheduled to take place in July, Sapre said.
With a focus on BFSI, hi-tech, health and life sciences business and virtually no presence in the aviation, travel, transport, tourism or hospitality verticals, Persistent Systems has managed to escape the blow of the Covid-19 pandemic on its business, ED and CFO Sunil Sapre said.
Persistent Systems will not implement salary cuts, large-scale layoffs or furloughs but they may, at best, be deferring the wage hikes scheduled to take place in July, Sapre said. This was because in the absence of a clear visibility of how things would pan out for rest of the year, the company was hoping that business momentum would be restored by the third quarter of this fiscal year.
Persistent’s Q4FY20 revenues grew 11.4% y-o-y to Rs 926.36 crore but profit after tax (PAT) fell 4.7% to Rs 83.82 crore. Profit and revenues were impacted because of the drop in IP-led business and there was a fall in revenues from the sale of licences. The technology services business grew 10.6% to nearly $400 million. Digital now accounts for 23.53% of Persistent’s business.
Their traditional business of product development was not dependent on any production systems of customers, Sapre said. Customers would re-purpose their spends to do things that will allow them to adapt to cloud, digital solution and security, and this augured well for the company, Sapre said. Persistent’s business model is different and the kind of product development and digital transformation work they do is not affected as much by these developments, Sapre said. The company is optimistic about its prospects in the digital, health and life sciences business.
Christopher O’Connor, CEO & ED, Persistent Systems, said for the first time in its history, the company has crossed the half billion-dollar mark in revenue. Persistent’s revenue in FY20 rose 3.5% to Rs 3,565 crore but PAT fell 3.2% to Rs 340.28 crore. Revenue in dollars rose 4.3% to $501.61 million. Around 80% of revenues came from the US.
During Q4FY20, the company delivered Salesforce’s Covid-19 care response solution for healthcare systems, SaaS for healthcare providers, building patient engagement engine with Salesforce for large US paediatric healthcare providers and launching patient relationship management platform using Salesforce for a large biopharmaceutical company. Persistent also expanded its partnership with Dassault Systèmes to strengthen digital transformation capabilities in Northern Europe. They will be partnering Dassault in the UK, Ireland and Benelux regions to help reduce costs, improve supplier collaboration, drive agility and gather better field insights for future product iterations and customer support.