Persistent Systems - Tad lower than expectations, retain HOLD - Emkay

- Persistent's Mar'13 qtr performance came in below expectations with a 2.2% QoQ US$ rev growth (Emkay est:+4.7% QoQ) on a/c of sluggishness in IP business

- EBITDA margins at 24.9%, +15 bps QoQ. Profits at Rs 519 mn (+5% QoQ), inline with estimates aided by forex gains and tax reversals

- Headcount addition remains decent. Linear business volume growth remains disappointing with Novaquest acquisition driving revenue/productivity increase

- Raise FY14/15E EPS higher by 10/5% to ~Rs 52/57 aided largely by currency resets. Retain HOLD, TP Rs 540(V/s Rs 500 earlier)

Source : Equity Bulls

Keywords