Persistent Systems’ net profit up 18.5% in Sept quarter

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October 27, 2020 1:50 AM

Persistent Systems reported an 18.5% year-on-year rise in its net profit to Rs 101.98 crore, with revenue going up 13.92% y-o-y to Rs 1,007.74 crore in the September quarter.

Persistent said that the CAPIOT acquisition would strengthen its ability to provide enterprise integration strategy and advisory services.The company has seen a growth in the services portfolio.

Persistent Systems reported an 18.5% year-on-year rise in its net profit to Rs 101.98 crore, with revenue going up 13.92% y-o-y to Rs 1,007.74 crore in the September quarter.

Anand Deshpande, founder and CMD, Persistent, said the company had for the first time ever exceeded Rs 1,000 crore in revenue and Rs 100 crore in profit in one quarter.

Persistent Systems has appointed Sandeep Kalra as CEO. He had joined the company in May 2019 as ED and president of the technology services unit.

Sunil Sapre, CFO, said they had a good first quarter in FY21 and were able to keep the momentum in the second quarter with a couple of large deals. The average deal size has been going up, with the number of deals over $5 million going up to 60 this year from only 11 last year, Sapre said.

The company has seen a growth in the services portfolio. As more and more business models change from B2B to B2C, there is an accelerated adoption to cloud and digital, leading to growth in banking, financial services, insurance and healthcare and life sciences business, Sapre said. Rise in the services business also helped in dealing with the cyclical nature of their IP-led business, Sapre said. The services business accounted for 83.8% of the revenues compared to 77% in the same period last year.

“Digitalisation has become mainstream and everybody is riding this wave. It gives us more opportunity to expand business with our existing clients,” he said.

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