Persistent Systems (PERSISTENT) Q4 12/13 earnings summary

Executive summary

• FY2012-13 consolidated revenue rose 29.4% in rupees and 14.7% in US dollars; EBITDA and PAT each increased 32.3% YoY.

• Growth was led by IP-led business and platform solutions, while the expanding IP portfolio added less headcount-dependent revenue and greater mix diversity.

• IP-led revenue reached 17.3% of total revenue; the strategic focus remained product engineering, platforms and solutions, and IP-related business.

Financial highlights

• Consolidated revenue was ₹12,945.12M versus ₹10,003.11M; total income was ₹13,320.92M versus ₹10,338.63M.

• Consolidated EBITDA was ₹3,413.10M versus ₹2,579.64M; PBT was ₹2,629.88M versus ₹1,968.68M.

• Consolidated PAT was ₹1,876.18M versus ₹1,417.80M; basic EPS rose to ₹48.62 from ₹37.02 and diluted EPS to ₹46.90 from ₹35.45.

• Standalone revenue increased 22.8% to ₹10,345.60M; PAT rose 32.3% to ₹1,818.09M.

Outlook and guidance

• Outlook was optimistic as cloud, analytics, social enterprise and mobility moved into mainstream adoption; these areas were expected to grow significantly over the next few years.

• Strategic relationships with platform leaders and acquired product IP were expected to support platform growth, diversify revenue and sustain non-linear IP-led expansion.

• Gartner forecast 2013 worldwide IT spending, including telecom, to grow 4.2% to US$3.74T; excluding telecom, spending was forecast to grow 6.3% to US$2.01T.