Persistent Systems - 3QFY2013 Result Review - Angel Broking

Persistent (CMP: Rs.559 / TP: Under review / Upside: -)

Persistent Systems (Persistent) reported its 3QFY2013 results which came in line with our expectations on the revenue front but disappointed on operating margin front. The dollar revenues came in at US$60.8mn, up 1.2% qoq, led by 2.1% qoq revenue growth from IT services which came in at US$49.7mn. The company's EBITDA margin declined considerably by ~250bp qoq to 24.8% which was a negative surprise. PAT stood at Rs.50cr, up 10.9% qoq aided by forex gain of Rs.1.8cr as against loss of Rs.4.1cr in 2QFY2013.

We await further clarity from management regarding decline seen in operating margins and keep stock under review.

Source : Equity Bulls

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