Views on Persistent Systems 3QFY2014 results - Angel Broking

Ms. Ankita Somani (Research Analyst - IT, Angel Broking) on Persistent Systems 3QFY2014 results:

"Persistent Systems reported its 3QFY2014 results which came in better than our expectations largely on all fronts. The dollar revenues came in at US$70mn, up 2.2% qoq, led by healthy 3.8% qoq growth in IT services revenues. IP-led revenues declined by 4.8% qoq after a sharp rise of 37.4% in 2QFY2014. In INR terms, revenues came in at Rs. 433cr, almost flat qoq. The company's EBITDA margin grew substantially by ~170bp qoq to 27.7%, on the back of ~11% qoq decline in SG&A expenses. PAT stood at Rs. 64cr, up 5.6% qoq, negatively impacted by forex loss of Rs. 15cr as against loss of Rs. 10cr in 2QFY2014. The management remains confident of FY2015 with deal pipeline being strong and remains focused on increasing the share of IP-led revenues in its portfolio. Owing to recent sharp run up in the stock price, we currently maintain Neutral rating on the stock."

Source : Equity Bulls

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