Persistent Systems (PERSISTENT) Q4 10/11 earnings summary

Executive summary

• FY2010-11 consolidated revenue rose 29.1% YoY to ₹7,758.41M; net profit after prior-period items rose 21.5% to ₹1,397.37M.

• Growth was supported by investments in cloud, analytics, collaboration and mobility, strong customer traction, and expansion of sales and delivery capacity.

Financial highlights

• Consolidated revenue was ₹7,758.41M versus ₹6,011.56M; export software services and products contributed ₹7,242.21M, up 27.1% YoY.

• Consolidated operating profit before depreciation and amortisation was ₹1,927.42M, up 22.3% YoY; profit before tax was ₹1,503.53M versus ₹1,240.74M.

• Net profit after tax and prior-period items was ₹1,397.37M versus ₹1,150.24M; prior-period deferred tax credit was ₹1.74M.

• Other income increased to ₹344.36M from ₹112.33M, including ₹173.21M in net forex gains and ₹118.35M in dividends from investments.

Outlook and guidance

• Strategy emphasized deeper account relationships, sell-with partnerships, IP-led solutions, end-to-end offerings and selective acquisitions to support profitable growth.

• Cloud, analytics, collaboration and mobility remained the principal technology growth areas; a Technology Consulting Group was planned to build on related expertise.

• Plans included scaling cloud assessment and implementation, strengthening enterprise and telecom offerings, and developing IP aligned with strategic technology areas.