Persistent Systems Limited announced its financial results for the fourth quarter and full year ended March 31, 2025, discussed during an investor/analyst call held on April 24, 2025.
- Q4 FY25 Performance:
- Revenue stood at USD 375.2 million, a growth of 4.2% quarter-on-quarter and 20.7% year-on-year. In rupee terms, revenue was ₹ 32,421.1 million, up 5.9% QoQ and 25.2% YoY.
- EBIT margin was 15.6%, a 70 basis point sequential improvement and 110 basis point year-on-year improvement. EBIT was ₹ 5,052.9 million.
- Profit After Tax (PAT) was ₹ 3,957.6 million, a growth of 25.5% YoY, with a PAT margin of 12.2%.
- Earnings Per Share (EPS) was ₹ 25.60.
- Full Year FY25 Performance:
- Revenue reached USD 1,409.1 million, a growth of 18.8% YoY. In rupee terms, revenue was ₹ 119,387.2 million, up 21.6% YoY.
- EBIT margin was 14.7% compared to 14.4% in FY24.
- PAT was ₹ 14,001.6 million, a growth of 28% YoY, with a PAT margin of 11.7%.
- EPS was ₹ 91.20, up 25.9% YoY.
- Bookings: Total Contract Value (TCV) for Q4 FY25 was USD 517.5 million (New Bookings: USD 329 million). Annual Contract Value (ACV) was USD 350.2 million (New Bookings: USD 198.1 million). Full Year FY25 TCV was USD 2.1 billion, and ACV was USD 1.5 billion.
- Client Growth: The company saw healthy year-on-year growth across client buckets, with increased numbers of clients in categories with annual revenues above USD 75 million, USD 50 million, USD 10 million, USD 5 million, and USD 1 million.
- Vertical Performance (YoY USD Growth Q4 FY25): Healthcare & Life Sciences grew 33.6%, BFSI grew 26.6%, and Software, High-Tech & Emerging grew 9.7%.
- Dividend: The Board recommended a final dividend of ₹ 15 per share, bringing the total dividend for FY25 to ₹ 35 per share (including the interim dividend of ₹ 20 per share declared in January 2025). This translates to a dividend payout ratio of 39%.
- Strategic Focus: The company continues to strengthen capabilities in AI across technology and business pillars, investing in platforms like SASVA (with 15 new patents filed this quarter) and pursuing inorganic growth. Strategic partnerships with hyperscalers and others are being enhanced.
- Management Commentary: Sandeep Kalra, CEO, noted market caution due to geopolitics and macroeconomic factors but emphasized focus on helping customers with growth and cost optimization challenges. He expects BFSI and Tech verticals to lead growth in the coming year, followed by Healthcare & Life Sciences. He reiterated the goal of reaching USD 2 billion in revenue by the end of FY27 and stated the company is well on that trajectory. Vinit Teredesai, CFO, explained margin movements were positively impacted by utilization, lower SG&A, and earn-out credits, partially offset by lower margins on certain multi-year managed services deals. He also noted the increase in intangible assets due to acquisitions and IP development (SASVA).