Shares of Persistent Systems Ltd., one of the best-performing stocks on the Nifty IT index in 2024, fell over 6% on Wednesday, January 22. The decline comes as the company prepares to report its December quarter (Q3FY25) results later in the day.
Key Estimates:
- Revenue Growth:
- In dollar terms: Expected to grow by 5% quarter-on-quarter (QoQ) to $362.7 million.
- In rupee terms: Forecasted to rise 5.6% QoQ to ₹3,060 crore.
- Earnings Before Interest and Tax (EBIT): Estimated at ₹447 crore, compared to ₹406.2 crore in the September quarter.
- EBIT Margins: Likely to expand by 60 basis points to 14.6%.
- Net Profit: Expected to grow by 7.7% QoQ to ₹350 crore.
- Constant Currency Revenue Growth: Projected at 4.6% to 4.7% QoQ, including a 50 basis point contribution from acquisitions Arraka and SohoDragon.
Previous Performance:
For the September quarter, Persistent Systems reported a 5.1% growth in constant currency terms, driven by broad-based expansion in the BFSI and healthcare verticals.
Analyst Ratings:
Out of the 39 analysts tracking Persistent Systems:
- 18 have a “Buy” rating.
- 13 recommend a “Sell.”
- 8 suggest “Hold.”
The IT sector’s performance remains under scrutiny as companies grapple with evolving global economic challenges, and Persistent’s results will provide key insights into the industry’s trajectory.
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