Companies

Persistent Systems Q4 net up 64% at ₹138 crore

Our Bureau Mumbai | Updated on April 30, 2021

Sunil Sapre

Rise in digital adoption boosted performance: CFO

Persistent Systems has posted a 64.35 per cent rise in consolidated net profit of ₹137.76 crore in the fourth quarter ended March 31, 2021, compared with ₹83.82 crore recorded during the same period of the previous fiscal.

The mid-tier IT company’s consolidated revenue rose 20.69 per cent to ₹1,113.36 crore during the quarter under review, as against ₹926.37 crore recorded in the fourth quarter of last year. The 12-month period ended March 31, the company posted a 32.4 per cent rise in consolidated net profit of 450.69 crore, while its revenues rose 17.4 per cent to ₹4,187.89 crore.

Digital adoption

“We have been recording consistent growth from the fourth quarter of the previous year to the first quarter of this year. Because of the accelerated pace of digital adoption amid the pandemic, we saw more customers adopting and converting more number of processes into digital,” Sunil Sapre, Executive Director and Chief Financial Officer, Persistent Systems, said.

The company, which had been signing deals of about $3-5 million in annual revenues during the past 3-4 quarters, expects this trend to continue in FY22.

The company's board has recommended a final dividend of ₹6 per share. This, with an interim dividend of ₹14 per share announced in January, takes the total dividend to ₹20 a share.

Increase in attrition

Persistent Systems added 1,650 personnel in the third quarter and 1,250 in the fourth quarter, taking its total employee strength to 13,680 as of March 31.

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The firm’s attrition also recorded an increase during the year, as there was a rise in demand for talent, which is expected to trend “upwards” in the next few quarters.

“We see some pressure on attrition, while appraisals and salary hikes are in progress. As we are growing, we would be adding about 800-1,000 freshers, while that of laterals would depend on the demand flow,” he added.

On the acquisition front, Sapre said, there is nothing on the immediate horizon, even though the firm is open if it comes across a “good company”.

Published on April 30, 2021

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