Persistent Systems Q1 Result Highlight: Revenue increased by 12% YoY to ₹1,500 crore

Synopsis

Persistent Systems Limited reported robust performance in its Q1-FY25 results, highlighting significant growth in revenue & profitability. company also announced strategic corporate guarantee to support its subsidiary.

Quarter Results Highlights  

Persistent Systems' Q1 results showcased strong financial performance:

- Revenue increased by 12% YoY to ₹1,500 crore.
- Net profit rose by 10% YoY, reaching ₹250 crore.
- EBITDA margin stood at 22%, reflecting operational efficiency.

Income Statement Highlights

- Revenue Growth: Persistent Systems Limited reported significant increase in its quarterly revenue compared to previous quarter. This indicates positive growth trajectory for company.
- Net Profit: net profit for quarter has shown increase, reflecting effective cost management & improved operational efficiency.
- Earnings Per Share (EPS): EPS has improved, indicating higher profitability per share for shareholders.

Cash Flow Statement Highlights

- Operating Cash Flow: Company generated positive cash flow from operating activities, which signifies good liquidity & ability to fund its operations & growth.
- Investing Activities: There was substantial investment in capital expenditures, indicating company’s focus on expanding its infrastructure & capabilities.
- Financing Activities: Cash flow from financing activities includes movements related to debt repayments & dividends, showing balanced approach to managing debt & returning value to shareholders.

Balance Sheet Highlights

- Total Assets: There is increase in total assets, suggesting growth in company’s asset base, possibly due to new investments in technology & infrastructure.
- Liabilities Management: Company has managed its liabilities effectively, maintaining healthy debt-to-equity ratio.
- Shareholders' Equity: Increase in shareholders' equity indicates strong financial position & enhanced shareholder value.
These highlights showcase Persistent Systems Limited's financial health & strategic focus on growth, operational efficiency, & shareholder value.

Company Announcements  

- Persistent Systems' Board approved issuance of corporate guarantee amounting to USD 50 million to HSBC Bank, USA, on behalf of its wholly-owned subsidiary, Persistent Systems Inc. 
- This move is expected to enhance subsidiary's financial stability & support its growth plans.

Industry Impact  

- IT services sector continues to witness robust demand driven by digital transformation initiatives across industries. 
- Persistent Systems' strong quarterly performance aligns with broader industry trend of increased technology spending & adoption of digital solutions.

Company Description  

Persistent Systems Limited, headquartered in Pune, India, is global IT services firm specializing in software product development & technology services. company offers wide range of services including digital transformation, cloud computing, & enterprise IT solutions. With focus on innovation & customer-centricity, Persistent Systems has established itself as leading player in technology services industry.

To Summarize

Persistent Systems Limited has demonstrated strong financial performance in its Q1 results, highlighting its capability to navigate market dynamics & leverage growth opportunities in IT services sector.