Persistent Systems shares nosedive after Q4 margin misses Street estimates; should investors be worried?

Persistent Systems share price, Persistent Systems Q4 FY24 results, Persistent Systems news: Persistent Systems shares took a heavy blow on Monday after the IT company staged an operationally weak performance for the final three months of the financial year 2023-24. The stock of Pune-headquartered Persistent Systems weakened by as much as Rs 337.1, or 8.7 per cent, to Rs 3,550.6 apiece in morning deals on BSE. 

At 11:15 am, Persistent shares were down by Rs 324.4, or 8.3 per cent, for the day at Rs 3,563.3 apiece on BSE.

Persistent Systems Q4 results

On Sunday, Persistent Systems reported a consolidated net profit of Rs 315.3 crore for the quarter ended March 31, an increase of 10.2 per cent on a quarter-on-quarter basis. Its revenue for the March quarter grew 3.7 per cent sequentially to Rs 2,590.5 crore, according to a regulatory filing. 

According to Zee Business research, Persistent Systems was estimated to report a fourth-quarter net profit of Rs 302 crore and revenue of Rs 2,575 crore. 

Its dollar revenue expanded 3.4 per cent to $310.8 million in the quarter under review from $300.5 million three months ago. Zee Business analysts had pegged the quarterly number at $310 million. 

The IT company's operational numbers, however, fell short of analysts' estimates.  

Persistent Systems logged Rs 374.2 crore in fourth-quarter earnings before interest and taxes (EBIT) as against Rs 363 crore for the December quarter. Its margin shrank by 10 basis points (bps) sequentially to 14.4 per cent. 

According to Zee Business research, the IT firm's March-quarter EBIT was estimated at Rs 383 crore and margin at 14.9 per cent. 

The Persistent Systems board declared a final dividend of Rs 10 per share. 

How market wizard Anil Singhvi views Persistent Q4 earnings

Zee Business Managing Editor Anil Singhvi said that Persistent Systems' quarterly numbers were in line with expectations, with "nothing great" and "nothing bad". 

Ahead of the start of Monday's trading session, the market guru said he saw support coming in at Rs 3,855, and higher levels at Rs 4,000 and Rs 4,050 for Persistent futures.  

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