Persistent Systems Q1 result preview: PAT likely to rise more than 7%, revenue to grow over 3%

Persistent Systems Q1 result preview: Persistent Systems Ltd, the Pune-headquartered IT services company, is expected to announce its June quarter numbers (Q1FY24) on Thursday, July 20. Ahead of the result announcement, shares of Persistent Systems traded over 2 per cent higher at Rs 5,085.6 apiece on the BSE. The stock has rallied for five straight sessions and has gained over 7 per cent in these sessions.

Here's how Persistent Systems is expected to perform in Q1

As per Zee Business research, the IT company is expected to post revenue for the quarter ending June 30 of Rs 2,330 crore, a 3.3 per cent increase as compared to Rs 2,255 crore in the 2023 March quarter.

The profit after tax (PAT) is expected to come in at Rs 270 crore against Rs 252 crore registered in the previous quarter, up 7.1 per cent. Earnings before interest and taxes, or EBIT, are expected to come in at Rs 360 crore, compared to Rs 347 crore seen in the previous quarter. The company's margin, a key measure of profitability for a business, may decline by 10 basis points (bps) to 15.5 per cent QoQ against 15.4 per cent in Q4FY23.

The research desk further sees a QoQ growth of 3.1 per cent in dollar revenue at Rs 28.35 crore against Rs 27.5 crore in the last quarter. Banking, financial services, and insurance (BFSI) and Telecom may impact earnings, and the margin is expected to remain flat.

Investors should keep an eye on the FY24 growth outlook, merger and acquisition update, EBIT margins outlook, top client performance, deal win and pipeline commentary, and IP business outlook.

Persistent Systems' share's historic performance

So far in 2023, shares of Persistent Systems have gained over 27 per cent against the Nifty's rise of nearly 9 per cent.

Catch latest stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.