Persistent shares retreat as margin pressure offsets quarterly growth
Revenue rose 7.8% sequentially, but Persistent reported a lower EBIT margin and profit after tax for the quarter.
Key takeaways
- Persistent’s constant-currency revenue rose 7.8% quarter on quarter to $487.6 million.
- EBIT margin fell 100 basis points sequentially to 15%, while profit after tax declined 27.2%.
Persistent Systems reported 7.8% sequential revenue growth in the second quarter, but its EBIT margin fell to 15%. Shares dropped 5.03% to Rs 5,544 on the BSE Friday, according to The Economic Times.
As of 06:02 UTC Friday, the shares traded at Rs 5,658 on the NSE, down 3.12% since the previous close. Profit after tax fell 27.2% quarter on quarter to Rs 351.51 crore. Total contract value was $633.5 million.
Nomura called the results a “mixed bag” and retained a Neutral rating, citing the margin shortfall. Persistent said it had secured about 94.04% of Nagarro’s share capital and voting rights, excluding treasury shares, as it progresses toward the acquisition.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
