In USD terms, revenue growth reached $118 million growing 12.3 per cent quarter-on-quarter, again in line with estimates.
“Revenues at $118.1 million were up 4.5 per cent QoQ (3.4 per cent organic growth and rest owing to the two-month consolidation of PARX acquisition). Revenues were in line with our estimates led by traction in Digital SBU.
EBIDTA margin at 15.2 per cent was up 90bps QoQ and below our estimates at 15.5 per cent. Quantum of margin expansion was below my estimates,” Said Madhu Babu, Research analyst at PL India.
Large BFS and data analytics projects from the United States and healthcare projects have driven growth in this quarter. Revenue growth over the previous quarter stood at 4.6 per cent and profits grew a little over 10 per cent over the quarter. EBIDTA touched Rs 115.7 crore which is higher than Bloomberg’s estimate of Rs 114.4 crore.
PL India further noted that the company reduced headcount by 155 persons over the quarter and also that there has been a reduction in headcount over the year. Persistent Systems, like many other Indian IT companies, has been plagued by allegations of layoff over the past few months.