Persistent Systems (PERSISTENT) Q4 13/14 earnings summary

Executive summary

• FY14 revenue rose 28.9% in rupees and 15.2% in USD; EBITDA increased 30.5% and net profit rose 32.9%.

• Growth came from platform partnerships and IP-led products alongside core software services; the three business streams represented roughly 60%, 20% and 20% of business, respectively.

Financial highlights

• Consolidated revenue was ₹16,691.53M; total income ₹17,001.69M; PBT ₹3,426.59M; net profit ₹2,492.77M, versus ₹12,945.12M, ₹13,231.13M, ₹2,629.88M and ₹1,876.18M in FY13.

• PBIDT/EBITDA reached ₹4,453.07M, up 30.5% YoY; depreciation and amortization rose 31.1% to ₹1,025.95M, mainly due to amortization of acquired intangible assets.

• IP revenue grew 34.7% and software-services revenue 27.7%; reported total revenue growth was 28.9% in rupees and 15.2% in USD.

Outlook and guidance

• FY15 priorities: improve customer experience, continue investing in platform technologies, strengthen the IP portfolio and sustain a “Happy Persistent” workplace.

• Focus areas include integrated SMAC solutions, larger program and project management services, and deeper domain capabilities in vertical business units.

• Management expected the market for cloud, mobile, analytics and digital transformation solutions to expand, supported by enterprise adoption and technology partnerships.