Persistent Systems Q3 Results Preview: Shares drop 5% ahead of earnings

Shares of Persistent Systems Ltd., the standout performer successful the Nifty IT scale successful 2024 with a singular 74 per cent gain, fell implicit 5 per cent connected January 22, up of its Q3 FY25 results.

The company’s USD gross is projected to emergence 5 per cent sequentially to $362.7 million, portion rupee-denominated gross is estimated astatine Rs 3,060 crore, reflecting a 5.6 per cent maturation from the September quarter, according to a CNBC-TV18 poll.

Margin and profitability outlook

Persistent's Earnings Before Interest and Tax (EBIT) is expected to turn to Rs 447 crore, up from Rs 406.2 crore successful the erstwhile quarter. Margins are forecasted to grow by 60 ground points to 14.6 per cent, driven by operational efficiencies. Meanwhile, nett net is anticipated to emergence 7.7 per cent sequentially to Rs 350 crore.

Revenue maturation successful changeless currency presumption is apt betwixt 4.6 and 4.7 per cent, with acquisitions of Arraka and SohoDragon contributing 50 ground points.

Industry traction and expert views

In the September quarter, Persistent achieved 5.1 per cent changeless currency growth, supported by beardown show successful its BFSI and healthcare verticals. Analysts stay divided connected the stock: of the 39 covering the company, 18 person a "buy" rating, 13 urge "sell," and 8 suggest "hold."

Stock performance

Despite its stellar show successful 2024, Persistent has seen a correction, with shares presently trading astatine Rs 5,592, down 19 per cent from their caller highest of Rs 6,788. The banal remains nether unit arsenic investors measure its valuations and upcoming maturation trajectory.

Persistent Systems is acceptable to denote its December 4th results aboriginal today, and each eyes volition beryllium connected whether the institution meets its robust maturation expectations.