Persistent Systems reported a 45.9% y-o-y rise in net profit to Rs 176.3 crore in the October-December quarter. Persistent’s revenues rose by 38.7% y-o-y to Rs 1,491.71 crore. The company’s dollar revenues increased by 36.2% to $199.12 million in the October-December 2021 period. Operating margins were at 16.8%. The order book for the quarter ended December 31, 2021, was at $334.3 million in total contract value. The company’s quarterly attrition was at 26%.
Persistent completed acquisitions of Software Corporation International and its affiliate Fusion360 as well as Shree Infosoft. Both these acquisition added to around 2.5% to the revenue growth during the quarter, Persistent Systems executive director and CFO, Sunil Sapre said. The company has seen growth in all its businesses — technology, healthcare and life sciences and in the banking, financial services and insurance business, he said.
Persistent was dealing with this challenge by hiring freshers instead of lateral hiring and poaching from other companies, Sapre said. Lateral hires have to be given at least 35-40% hikes, he pointed out . So the company had broadbased supply and hired 1,110 freshers in Q3FY22 and would be hiring another 1,000 in Q4FY22. This way there was less pressure on lateral hiring and the freshers would take only a couple of quarters to get ready to be deployed on live projects, Sapre said.
In a bid to retain talent and enable employees to participate in the long term growth story, the company has expanded its ESOP programme in second quarter of this year. ESOPs were being offered it to almost 80% of the team with anyone with two years of experience at the company eligible for ESOP. The company had 17,000 employees at the end of the third quarter of FY22.
The company is seeing a rise in deal sizes with 24 deals in the $5 million category. They could be looking at more deals in the $10-20 million range next year, Sapre said. Digital transformation deals take time to roll out.