Persistent Systems Reports Robust Financial Performance in Q4 FY25
Persistent Systems has showcased impressive financial growth, reporting a sequential net profit increase of 12.2%, amounting to Rs 395.76 crore for the quarter ending March 2025. This growth trend continued as revenues surged by 4.2%, reaching $375.2 million. Additionally, the company experienced a 5.9% rise in revenue sequentially, totaling Rs 3,242.1 crore. With a notable 70 basis point enhancement in EBIT margins, now at 15.6%, the company is clearly on the path to sustained success.
Key Financial Highlights
- EBIT grew by 10.9% quarter-over-quarter, hitting Rs 505.29 crore.
- Total contract value (TCV) for order bookings reached $517.5 million, while the annual contract value (ACV) stood at $350.2 million.
- The utilization rate climbed to 88% in Q4 FY25, an increase from 81% in Q1 FY24, contributing to improved margins.
Leadership Insights on Growth Trajectory
Sandeep Kalra, the Chief Executive Officer and Executive Director at Persistent, expressed pride in the company’s performance amid a challenging macroeconomic landscape. He highlighted that the current results mark the 20th consecutive quarter of revenue growth. Kalra remains optimistic about achieving an annual revenue target of $2 billion by FY27, with an ambitious goal of reaching $5 billion by FY30. He stated, “Maintaining quarterly revenues around $375 million could lead us to $1.5 billion in FY26. We also anticipate growth through strategic acquisitions in new sectors.”
Sector-Specific Performance and Future Outlook
Kalra noted that the healthcare and life sciences sectors have been pivotal in driving Persistent’s growth over the last six quarters. Looking ahead, he anticipates the banking, financial services, and insurance (BFSI) sectors to lead growth this year, closely followed by advancements in software, hi-tech, and emerging technologies.
- BFSI sector revenue soared by 26.6% to $121 million.
- Healthcare and life sciences revenue grew by 33.6% to $100 million.
- Software, hi-tech, and emerging technologies increased by 9.7% to $153.5 million during the March quarter.
Despite potential challenges from budget constraints in healthcare, there is a silver lining with increased offshoring opportunities within this sector.
Workforce Expansion and Dividends Declared
The workforce at Persistent expanded by 744, bringing the total to 24,594 employees, with an attrition rate of 12.9%. In corporate governance news, Vinit Teredesai has been appointed as an additional director on the board.
In a show of confidence, the company declared an additional dividend of Rs 15, raising the total dividend for FY26 to Rs 35 per share. Following the announcement of Q4 FY24 results, Persistent’s stock saw a modest increase of 0.51%, reaching Rs 5,189 on the BSE.
As Persistent Systems continues to thrive, its strategic focus on key verticals and commitment to operational efficiency sets a promising trajectory for future growth.
