Persistent Systems Q2FY23 PAT up 36% at Rs220 crore as surge in manpower costs limit profit growth

25 Oct 2022 , 12:43 AM

Persistent Systems Ltd reported 51.61% growth in total revenues for the September 2022 quarter on consolidated basis at Rs2,049cr.

Revenue growth was 9.08% in sequential terms. In terms of verticals, Persistent posted healthy growth across BFSI, Healthcare, life sciences and hi-tech verticals.

In terms of EBIT contribution, Healthcare had the best contribution while BFSI and hi-tech were around 33%.

Its sales mix is tilted more toward software and hi-tech verticals followed by the BFSI and healthcare verticals for the latest quarter.

Consolidated Profit after tax (PAT) for September 2022 quarter was up 36.02% at Rs220.01cr. On a sequential basis, the profits were up 3.97%.

The profit growth was much lower than the revenue growth and that can be attributed to nearly 50% growth in the manpower costs in the quarter on a yoy basis.

PAT margins were lower at 10.74% in the Sep-22 quarter compared to 11.97% in the Sep-21 quarter and as against 11.27% in June 2022 quarter. Net profits were up 37.9% in the first half of FY23 on a yoy basis.

Financial highlights for Sep-22 compared yoy and sequentially

	Persistent Systems
Rs in Crore	Sep-22	Sep-21	YOY	Jun-22	QOQ
Total Income (Rs cr)	₹ 2,048.64	₹ 1,351.25	51.61%	₹ 1,878.11	9.08%
Net Profit (Rs cr)	₹ 220.01	₹ 161.75	36.02%	₹ 211.61	3.97%
Diluted EPS (Rs)	₹ 28.79	₹ 21.16		₹ 27.69
Net Margins	10.74%	11.97%		11.27%