Persistent Systems gains on strong Q3 show
Published On: Thursday, January 19, 2023 | By: Team KnowMyStock
The share price of midcap IT firm Persistent Systems gained over 7 percent on January 19 after the company registered an 8.2 percent sequential growth in profit at Rs 238 crore for the quarter that ended December 31, 2022. The company had reported a net profit of Rs 176.4 crore in the same quarter of the previous fiscal year. The company's earnings were majorly in line with the analysts' estimates, which pushed the stock to move higher. Persistent clocked a 45.4% increase in the revenue from operations at Rs 2,169.3 crore during the October-December 2022 period, which stood at Rs 1,491.7 crore in the year-ago period, whereas the operating EBITDA of the company stood at 401.5 crores in Q3FY23, up 59.9% YoY. The IT company also announced an interim dividend of Rs 28 a share for FY23.The total expenses of the company spiked 43.83% YoY to Rs 1,849.6 crore during the quarter.
The company said it won several large deals across industries and service lines, driving 20 percent sequential growth in total contract value (TCV) bookings during the quarter. The order booking for the quarter ended stood at $440.2 million in TCV.In a note released on January 13, foreign brokerage firm Macquarie picked Persistent Systems as its top midcap IT stock, with a target price of Rs 8,330, indicating a 100 percent upside from current level. "We see broad-based growth drivers that have helped deliver superior growth despite a drag from top five clients," it said.
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