Persistent Systems reports robust financial growth in FY24, expands digital transformation services

Persistent Systems Ltd. (BSE & NSE: PERSISTENT), a prominent figure in digital transformation services, has announced a significant financial growth for the fiscal year ended March 31, 2024, underscoring its strategic expansion and innovation in technology solutions. The company’s audited financial results reveal a 14.5% increase in revenue, totaling $1,186 million, up from $1,035.98 million the previous year, with a substantial 17.6% growth in revenue in INR terms.

Annual Financial Performance Highlights

– Revenue: Persistent achieved a revenue of Rs. 98,215.87 million, marking a 17.6% increase from the previous year.

– EBITDA: Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose to Rs. 17,243.02 million, up 13.5% year-over-year.

– Profit Before Tax (PBT): PBT increased by 16.7% to Rs. 14,476.06 million.

– Profit After Tax (PAT): PAT saw a rise of 18.7%, amounting to Rs. 10,934.92 million.

– Earnings Per Share (EPS): Diluted EPS for the year was Rs. 8.58, reflecting a slight decrease from the previous year’s Rs. 8.94.

Quarterly Financial Performance Insights

For the quarter ending March 31, 2024:

– Quarterly Revenue: Grew by 3.4% to $310.89 million compared to the previous quarter, and year-over-year growth stood at 13.2%.

– Quarterly EBITDA: EBITDA for the quarter was Rs. 4,543.62 million, up 2.8% from the previous quarter.

– Quarterly PBT and PAT: PBT grew by 1.6%, while PAT increased significantly by 10.2% from the previous quarter.

Strategic Dividends and Shareholder Returns

The Board of Directors recommended a final dividend of ₹10 per share on the face value of ₹5 per share for FY 2023-24, pending approval at the upcoming Annual General Meeting. This follows an interim dividend of ₹32 per share on the face value of ₹10 per share declared in January 2024.

Leadership’s Vision and Strategic Directions

Anand Deshpande, Founder, Chairman, and Managing Director, reflected on the year’s achievements, stating, “Our continued success this fiscal year is a testament to our innovative spirit, remarkable resilience, and strategic foresight, powering the digital transformation journeys of our clients.” Sandeep Kalra, Chief Executive Officer and Executive Director, added, “As we reflect on fiscal year 2024, I extend my gratitude towards our team, clients, partners, and investors, whose trust has powered our impressive journey.”

Notable Achievements and Client Engagements

Persistent’s client engagements in Q4 FY24 included significant wins across various sectors:

– Software and Technology: Initiatives like upgrading legacy systems and developing AI/ML applications for a leading consumer intelligence company.

– Banking and Financial Services: Accelerating digital transformation for a major insurance firm and creating new CRM experiences for the financial services sector of a Fortune 500 automobile company.

– Healthcare and Life Sciences: Projects included developing a modern data analytics platform for a drug wholesaler and integrating clinical applications for a leading renal care provider.

Outlook and Future Projections

Persistent Systems is poised to continue its growth trajectory, focusing on strategic investments in disruptive technologies like AI, and expanding its digital engineering capabilities to meet the evolving needs of global clients.