Persistent Systems Q2 revenues up 13.9%, profits up 18.5%

Persistent Systems reported an increase of 13.92% in top line sales for the Sep-20 quarter at Rs1,007.75cr.

Oct 24, 2020 05:10 IST India Infoline News Service

Persistent Systems
PERSISTENT SYSTEMS reported an increase of 13.92% in top line sales for the Sep-20 quarter at Rs1,007.75cr. The operating profits for the quarter ended Sep-20 were up by 54.68% at Rs122.43cr while the net profits were up by 18.5% at Rs101.99cr on a yoy basis.
This had a logical impact on the margins too. For the Sep-20 quarter, the operating profit margins or OPM expanded by 325 basis points at 12.15% while the net profit margins or NPM for the quarter was up just 40 bps at 10.12% due to the impact of lower other income and higher tax impact.
Financial highlights for Sep-20 compared yoy and sequentially

Particulars Sep-20 Quarter Growth (yoy) Growth (qoq)
Total Revenues Rs1,007.75cr +13.92% +1.65%
Operating Profit Rs122.43cr +54.68% +19.76%
Net Profits Rs101.99cr +18.50% +13.31%
Key Ratios Sep-20 Quarter Sep-19 Quarter Jun-20 Quarter
Diluted EPS Rs13.34 Rs11.26 Rs11.78
Operating Margins 12.15% 8.95% 10.31%
Net Profit Margin 10.12% 9.73% 9.08%

Key takeaways from the Sep-20 quarter results

  • Net cash generated from operating activities in the first half of the fiscal year was up more than 7-fold at Rs239cr on the back of more favourable working capital movements in the first half of this fiscal as compared to last year.
  • In terms of segmental verticals, technology and emerging verticals accounted for over 45% of the total revenues while BFSI accounted for about 30% with healthcare and life sciences accounting for the balance in the Sep-20 quarter.
  • The company has recently received a show cause notice from the Department of Revenue Intelligence (DRI) pertaining to export incentives of Rs25.55cr claimed by the company. While no provision is made, the impact is likely to be minimal.

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