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Persistent Systems Achieves Remarkable Growth in Q3 FY25

Persistent Systems (BSE: 533179, NSE: PERSISTENT) has recently released its audited financial results for the quarter ending December 31, 2024, marking a significant achievement for the company. The results reveal that Persistent has successfully generated a revenue of $360.2 million, reflecting a 4.3% increase quarter-on-quarter and an impressive 19.9% growth year-on-year. This growth underscores the strength of the company’s strategy focused on AI-driven services and platforms.

Quarterly Financial Highlights

Throughout the third quarter of FY25, Persistent witnessed a total contracted value (TCV) of $594.1 million and an annualized contracted value (ACV) of $428.3 million. Key financial metrics include:

• - EBITDA: ₹5,378.4 million, up by 17.6% quarter-on-quarter
• - Profit Before Tax: ₹4,820.4 million, representing a 15.7% increase
• - Profit After Tax: ₹3,729.9 million, with a growth of 12.2%

The board has also declared an interim dividend of ₹20 per share, reinforcing the commitment to creating value for shareholders.

Client-Centric Innovations

Persistent Systems has turned heads this quarter by advancing its customer-centric innovations and achieving key milestones. The firm has been recognized with the 2024 ISG Star of Excellence™ Overall Award, which showcases its excellence in client experience. The company’s commitment to innovation is further highlighted by the filing of over 20 patents related to its proprietary software development platform, SASVA™. Moreover, the new solution, ContractAssIst, which utilizes Microsoft 365 Copilot, has received accolades from tech leaders like Satya Nadella, emphasizing the impactful contributions of Persistent in the tech industry.

Achievements Across Industries

Persistent’s growth can be attributed to its diverse operational focus, particularly in sectors such as healthcare, finance, and technology.

Technology Sector

• - Modernization of product development processes with SASVA™ for a leading UK enterprise software provider to boost recurring annual revenue.
• - Leveraging AI-engineered solutions to enhance product management and security for a cutting-edge observability software provider.

Banking and Financial Services

• - Application of SASVA™ to modernize existing systems and reduce technological debt for a US-based financial services company.
• - Transformation of enterprise gateway services for a global payment technology firm to enhance scalability and real-time authorization with minimal latency.

Healthcare Advances

The healthcare sector saw significant advancements, such as:

• - Upgrading patient care and pharmacy platforms to enhance the overall patient experience and reduce technological debt for a leading healthcare provider.
• - Facilitating the migration from MuleSoft to Azure using SASVA™, resulting in improved operational efficiencies for a global analytical solutions provider in life sciences.

Recognition and Sustainability Efforts

Persistent’s robust financial standing has been recognized with an AA+ stable rating from ICRA, indicating the company’s strong capital structure and long-standing client relationships. Moreover, Persistent’s inclusion in the Dow Jones Sustainability World Index highlights its dedication to integrating sustainability into its business operations. As the company pursues innovative solutions, it remains committed to enhancing customer value while promoting sustainable practices.

This quarter's results reaffirm Persistent Systems' position as a leader in the technology sector, driven by an unwavering commitment to innovation and excellence. With a dedicated workforce across 19 countries and a strong focus on digital engineering and enterprise modernization, Persistent continues to grow amidst a dynamic market landscape. As it moves forward, the company aims to further accelerate its growth trajectory while upholding its standards of sustainability and client satisfaction.

Conclusion

Persistent Systems stands out not only for its financial gains but also for its commitment to innovation and sustainability. As it continues to deliver exceptional solutions to its clients, Persistent is poised for even greater success in the coming quarters.