Persistent Systems Reports Strong Q2FY24 Results and Soars in Stock Price

Persistent Systems Reports Strong Q2FY24 Results and Soars in Stock Price

VoM News Desk | October 19, 2023 | 03:30 PM IST | Breaking News | Follow on Google News

Persistent Systems Reports Strong Q2FY24 Results and Soars in Stock Price

Persistent Systems Reports Strong Q2FY24 Results and Soars in Stock Price

Persistent Systems saw a substantial surge in its share price, with an increase of over 4%, following the release of positive Q2FY24 numbers, underpinned by robust order bookings. The company reported that the total contract value (TCV) of their order bookings exceeded $475 million. The opening price for Persistent Systems shares was ₹5,784.65 on the BSE, with the stock trading near its 52-week high levels. The intraday high for Persistent Systems stock reached ₹5,949, while the low stood at ₹5,705.55.

Technical analysts have noted that the midcap IT sector is exhibiting strong momentum, leading the way in the market. They anticipate a range breakout, with expectations of prices moving towards ₹6,200 in the near term, while ₹5,750 is seen as a key support level for Persistent Systems.

Impressive Q2FY24 Figures

In Q2FY24, Persistent Systems reported a remarkable 17.7% year-on-year increase in consolidated revenue, reaching ₹2,411.7 crore. This represented a significant growth from the ₹2,048.6 crore in revenue generated during the same period the previous year. The company also saw a healthy 3.9% sequential growth in revenue. Moreover, the revenue increased by 3.1% quarter-on-quarter and 14.1% year-on-year when calculated in US dollars.

In comparison to the Q2 of the previous year, when the profit after tax (PAT) was only ₹220 crore, Persistent’s Q2 PAT rose by 19.7% year-on-year to ₹263.27 crore. This positive financial performance demonstrates the company’s strength and resilience.

Outlook and Brokerage Perspective

Regarding the quarterly earnings performance, Sandeep Kalra, the Chief Executive Officer and Executive Director of Persistent, commented, “Our proactive approach and ability to adapt has enabled us to thrive in this uncertain macroeconomic environment, leading to our highest-ever TCV with more than $475 million in bookings in Q2FY24.”

Brokerage firm Motilal Oswal Financial Services stated that they would reevaluate their projections following the earnings call and closely monitor any commentary on margins, verticals, and near-term forecasts. They have maintained a Neutral recommendation for the shares.

VoM News Desk

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