Persistent Systems (PERSISTENT) Q4 14/15 earnings summary

Executive summary

• FY15 consolidated revenue rose 13.3% to ₹18,912.52M and net profit increased 16.6% to ₹2,906.31M; services and IP revenue both grew.

• Strategic focus expanded from serving software product companies to helping enterprises become software-driven businesses through digital transformation.

• Workforce reached 8,506 across 11 countries; attrition rose to 15.5% from 14.4% in FY14.

Financial highlights

• Consolidated revenue was ₹18,912.52M versus ₹16,691.53M; USD revenue increased 12.6% to $308.54M.

• PBIDT rose 8.7% to ₹4,841.62M; PBT increased 13.8% to ₹3,899.72M and PAT rose 16.6% to ₹2,906.31M.

• Services revenue grew 11.7% and IP revenue 20.5% in INR; total income increased 16.76% to ₹19,850.67M.

• Other income included a ₹469.17M FX gain versus a ₹149.31M loss in FY14; excluding FX gain, other income increased 51.2% to ₹468.98M.

Outlook and guidance

• FY16 priorities center on enterprise digital transformation, with investments in IP, automation, platform partnerships and go-to-market capabilities.

• Management viewed enterprise digital transformation as a large, growing opportunity; the technology roadmap emphasizes cloud, analytics, collaboration, mobility, sensors and machine-learning automation.

• Enterprise work generated almost one-quarter of revenue; focus areas include financial services, healthcare, media and high tech.