Persistent Systems (PERSISTENT) Q4 15/16 earnings summary

Executive summary

• FY15-16 revenue rose 22.3% YoY to ₹23,123.31M; net profit increased 2.3% to ₹2,973.61M. Q4 marked the 100th quarter and crossed $100M in revenue.

• Growth reflected stronger enterprise digital transformation and IP-led activity, while the revenue mix shifted away from outsourced product development.

• Priorities include growth through disciplined investment, digital transformation offerings, IoT and the IBM alliance.

Financial highlights

• Consolidated revenue from operations was ₹23,123.31M, up 22.3% YoY in INR and 14.0% in USD to $351.65M.

• Net profit was ₹2,973.61M, up 2.3% YoY; diluted EPS was ₹37.17 versus ₹36.33.

• PBT was ₹3,956.27M, up 1.5% YoY; total tax expense was ₹982.66M versus ₹993.41M.

• Revenue from software services rose to ₹22,358.47M from ₹18,376.93M; software licenses reached ₹764.84M versus ₹535.59M.

• Consolidated operating cash flow was ₹2,540.60M versus ₹3,115.95M; investing cash outflow was ₹1,161.75M and financing cash outflow ₹1,266.29M.

Outlook and guidance

• Growth focus for FY16-17: disciplined investment and resource allocation, enterprise digital transformation, IoT and Industry 4.0 opportunities with IBM.

• Enterprise digital transformation is expected to become a key growth driver as businesses shift technology spending toward growth and customer experience.

• No numeric revenue or earnings guidance was given; the stated strategy emphasizes continuous product innovation, platform-led solutions and expansion beyond traditional software-product customers.