Persistent Systems - 4QFY2013 Result Review - Angel Broking

Persistent Systems (Persistent) reported its 4QFY2013 results which were largely inline with the expectations. The dollar revenues came in at US$62.1mn, up 2.2% qoq, led by 3.1% qoq revenue growth from IT services revenue which came in at US$51.2mn. IP led revenues declined by 1.7% qoq to US$11mn. The company's EBITDA margin grew slightly by 12bp qoq to 24.9% with headwinds of rupee appreciation and higher G&A expenses and tailwinds of decline in doubtful debt provisions and flat employee costs even with number of employees going up. PAT stood at Rs. 52cr, up 5% qoq aided by forex gain of Rs. 4.1cr as against Rs. 1.8cr in 3QFY2013.

The management remains confident of FY2014 with deal pipeline being strong and remains focused on increasing the share of IP-led revenues in its portfolio. The stock is currently under review.

Source : Equity Bulls

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