#USA #Santa Clara #AI Technology #Persistent Systems #revenue growth

Persistent Systems Reports Strong Q3 FY25 Performance

Persistent Systems (BSE: 533179; NSE: PERSISTENT) has recently showcased impressive financial results for the quarter ending December 31, 2024, achieving a revenue of $360.2 million. This marks a notable increase of 4.3% from the previous quarter and an impressive 19.9% year-over-year growth. The company’s robust financial performance underlines its strategic focus on AI-led and platform-driven services, emphasizing its significance in the rapidly evolving tech landscape.

Key Financial Highlights

The audited financial results reflect the continued expansion and operational success of Persistent Systems:

• - Revenue (USD Million): $360.2 million

- Quarter-over-Quarter Growth: 4.3%
- Year-over-Year Growth: 19.9%

• - Revenue (INR Million): ₹30,622.8 million

- Quarter-over-Quarter Growth: 5.7%
- Year-over-Year Growth: 22.6%

• - EBITDA (INR Million): ₹5,378.4 million

- Margins: 17.6%

• - Profit Before Tax (INR Million): ₹4,820.4 million

- Margins: 15.7%

• - Profit After Tax (INR Million): ₹3,729.9 million

- Margins: 12.2%

Additionally, the company's board has declared an interim dividend of ₹20 per share, illustrating confidence in future growth.

Strategic Milestones

CEO Sandeep Kalra highlighted the company’s 19 consecutive quarters of revenue growth, driven largely by its strategic emphasis on AI. Significant milestones achieved this quarter included:

• - Winning the 2024 ISG Star of Excellence™ Overall Award, based on customers' feedback, which underscores Persistent's commitment to re(AI)magining client businesses.
• - The filing of 20+ patents related to their AI-software development platform, SASVA™, demonstrating Persistent's dedication to innovation.
• - The co-developed ContractAssIst solution, which leverages Microsoft 365 Copilot, was acknowledged personally by Microsoft CEO Satya Nadella during a recent AI tour.

Moreover, Persistent Systems secured an AA+ (Stable) credit rating from ICRA, which recognizes the company's strong financial standing, experienced leadership, and a sound capital structure that reinforces its market position.

Client Engagements

During the third quarter, Persistent achieved impressive order bookings of $594.1 million in Total Contract Value (TCV) and $428.3 million in Annual Contract Value (ACV). Key wins included:

• - Collaborating with a top UK business software provider to modernize product development through SASVA™, enhancing their annual recurring revenue.
• - Utilizing AI-led engineering solutions for a leading IT software provider, optimizing security and revenue.
• - Streamlining data management for a prominent facility management company using iAURA.

In the financial services sector, Persistent is modernizing legacy systems and improving efficiency for multiple clients, including:

• - A US-based financial services company enhancing developer productivity through SASVA™.
• - A global payment technology firm revamping its enterprise services to boost scalability and efficiency.

News and Recognition

This quarter, Persistent Systems also introduced the ContractAssIst solution via Microsoft 365 Copilot, showcasing advancements in contract management, and launched the Pi-OmniKG platform in collaboration with Google Cloud. Notably, Persistent was recognized as a Leader in the 2024 ISG Provider Lens™ for Generative AI Services, reflecting its leadership in cutting-edge technology solutions.

Additional accolades include:

• - Best Governed Company in the Medium Listed Segment and recognition at the 24th ICSI National Award for Excellence in Corporate Governance.
• - Awards for Best Corporate University and Best Employee Engagement Program.

About the Company

Founded with the vision of delivering cutting-edge digital engineering and enterprise modernization, Persistent Systems employs over 23,200 professionals across 19 countries. Their services encompass a wide range of areas including AI-enabled software engineering, cloud computing, and intelligent automation. The company is dedicated to sustainability, having achieved carbon neutrality and participation in the UN Global Compact, aligning its operations with fundamental human rights and environmental principles.

For further information, please visit Persistent Systems.