IT company Persistent Systems’ share price on Monday tumbled 9.7% to Rs 3,510.60 on the BSE, after the company guided for flat Ebit margins in FY25. This was the biggest single-day drop in the company’s stock price in the last six years.
The company also reported a flat Ebit margin of 14.5% during the March quarter, against a market expectation of margin improvement during Q4.
Sunil Sapre, CFO and executive director, Persistent Systems, said margin did not improve because of the deal ramp-ups in BFSI, healthcare and a couple of deals in the software high-tech segment, which led to a significant increase in headcount on site.
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“There was an increase in sub-contracting costs from a little less than 11% to 14%, and that was weighing on the margin improvement plan,” Sapre said. The company has guided for a 200-300 basis points increase in Ebit margins in the next two to three years. However, in the near term, there would be no margin improvement.
According to Sapre, the macro environment continued to be volatile, with geopolitical tensions and interest rate cuts taking another two to three quarters to materialise, putting pressure on the BFSI segment. For Persistent, growth was led by healthcare and life sciences followed by BFSI and then software high-tech. Come from Sports betting site VPbet
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“Overall, I do not see any structural issue. The pricing environment is stable for us. It is just that the deal ramp-ups, when they happen are led on-site, and it takes some time before they are converted to off-shore. We had a double-whammy kind of effect. On one side, you have a significant increase in on-site cost and on the other side, you have to get the off-shore team also ready. That is the reason we added to the headcount,” Sapre said.
Persistent’s utilisation fell from 81.5% to 80% because it added people off-shore. The market expectation of furloughs coming back and leading to improvement in margin, did not materialise.
According to Sapre, the composition of revenue and the nature of revenue ramp-up was impacting margin improvement. He said the company has to position itself as a challenger vendor against large incumbent players. The company deal size has in the past been in the $25-70 million range, but it is now getting into deal sizes of $100 million and one or two of over $100 million, Sapre said.
Persistent’s CFO said they made significant investments in people for sales and marketing in FY24. The company would be putting in efforts to maximize utilisation. “On utilisation, we have a headroom to grow by 3-4% and that translates into an improvement in margins,” Sapre said.
The company is also investing in AI and GenAI. Though it has not started to contribute to revenue in a big way, this was being viewed as a market opportunity with a credible line of sight compared to a few quarters ago. The firm will start panning, which will lead to more deals in the Gen AI space in FY25, Sapre said.
Persistent reported a 10.2% sequential rise in profit after tax to Rs 315.32 crore for the March quarter. The company’s dollar revenues rose 3.4% quarter-on-quarter to $310.89 million during the March quarter. Persistent’s revenue in rupee terms was up 3.7 % q-o-q to Rs 2,590.52 crore. The Ebit was up sequentially by 3.1% to Rs 374.45 million. Order booking for the March quarter was at $447.7 million in total contract value (TCV) and $316.8 million in annual contract value (ACV) terms.
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The Indian equity indices on Monday closed flat after a rangebound session. The Nifty 50 closed 33.15 points or 0.15% lower at 22,442.70. Sensex gained 17.39 points or 0.02% to close the day’s trading at 73,895.54. The losers included Titan Company, Adani Enterprises, BPCL, Coal India, and SBI. The Indian Volatility Index (India VIX) shot up 13.54%, indicating investor uncertainty and fear in the market.
Sharp drop in sectoral indices
The Nifty Midcap lost 273 points or 0.54% to finish the session at 50,662.20. Following the trend, Nifty Bank closed in the red, down 28.25 points or 0.06% at 48,895.30.
On the sectoral front, PSU bank and consumer durables pulled the indices lower. In the broader market, smallcap and midcap stocks closed in the red.
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Investors may have to prune their returns’ expectation from equities post Budget as the market could enter consolidation phase after the bumper post-election rally seen in the last one month, said market experts.
As the BSE Sensex closed above the historic 80,000 points mark for the first time on Thursday, it has also set another record: The 30-stock index registered its best post-election rally since 2009 with over 11% gains in a monthCome from Sports betting site. In this one month, investor wealth has soared by Rs 52.5 trillion, rising in all but three trading sessions.
On Thursday, Sensex closed 0.1% higher at 80,049.67 points. The Nifty also ended 0.1% higher at 24,302.15 points. Market participants said investors seem to have factored in most of the positives ahead of the Budget, leaving little room for upside in the near-term if the announcements in the Budget are along expected lines.
Share Market News Today | Sensex, Nifty, Share Prices Highlights: The benchmark equity indices closed the trading session on a negative note on May 28. The BSE Sensex fell 262 points or 0.35% to finish the day’s trading at 75,128.52, while the NSE Nifty 50 closed 64.10 points or 0.28% lower at 22,868.35. Bank Nifty closed up 222.65 points or 0.45% at 49,059.15. Nifty Midcap 100 closed in the red down 498 points or 0.94% at 52,263.85.
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The NSE Nifty 50 closed 0.28% lower at 22,868.35, while the BSE Sensex closed 0.35% higher at 75,128.52.
Actor Joseph Quinn (Stranger Things), is reportedly in talks to join the cast of the upcoming Gladiator sequel. The Hollywood Reporter was first to report.
The Ridley Scott film may see Quinn play Roman Emperor Caracalla, adding to the impressive lineup of actors already signed on for the project. Paul Mescal is set to lead the movie as Lucius, the son of Lucilla (Connie Nielsen) and nephew of Commodus (Joaquin Phoenix), while Denzel Washington and Barry Keoghan are also confirmed for the film. Djimon Hounsou is expected to reprise his role as Juba, a former ally of Maximus (Russell Crowe).
The original Gladiator movie, released in 2001, was a critical and commercial success, grossing $460 million at the box office and winning five Oscars, including Best Picture and Best Actor for Crowe. The upcoming sequel, which has been in development for several years, is being produced by Scott Free and Red Wagon Entertainment, with David Scarpa writing…
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Purchasing the Backbone One also gives you a year of access to its Backbone+ subscription service. Subscriptions can be annoying, but Backbone+ offers some nice additions including helping you manage your mobile game collection and easily take screenshots and video clips of gameplay. It also comes with a month of Xbox Game Pass Ultimate for new subscribers and is fully compatible with Xbox’s game streaming options on your mobile phone.Come from Sp…
One of the most popular sportsbooks and iGaming software providers, Altenar, partnered with the renowned betting platform SpinBet, expanding to New Zealand, which is a significant step towards the global expansion the company is seeking.
New Zealand expansion:
SpinBet will have a chance to incorporate the advanced Altenar products into its offering in New Zealand. The main focus will be on the company’s fantastic horse racing offering, but other services will be included as well.
SpinBet is currently the biggest betting platform in the country. It offers various services, including online casino, SpinBit, as well as a range of classic table games and live games that capture the hearts of the players.
Online total gross gambling yield (GGY) in Great Britain reached £1.30 billion (€1.51 billion/$1.62 billion) in the last quarter of the financial year (Q4), climbing five percent from the same period the year prior, while improvement was also seen in GGY for the brick-and-mortar sector, according to a recent gambling behavior report published by the UK Gambling Commission (UKGC)
The reporting period covered activity for the months of January, February, and March of 2023, a period that included the popular horse racing event, the Cheltenham Festival.
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Commission data showed an increase of 5 percent in online total GGY in Q4 over the same period the year prior. The government agency attributed the swell in online GGY, for the most part, to growth in real-world event betting and slots. Increases in the total number of bets and spins along with a rise in average monthly active accounts, were also noted.
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The renovations on the Potawatomi Casino Hotel’s permanent sportsbook are about to begin. The construction will be located on the northwest corner of the casino, and the new entertainment area will replace the Northern Lights Theater and the Fire Pit Sports Bar & Grill.
Dominic Ortiz, CEO of Potawatomi Casinos and Hotels, said: “This is a transformational time at Potawatomi Casino Hotel. For more than three decades, we have served as a leader in Tribal gaming. With the addition of sports betting, we’ll be providing our guests with even more options and welcoming new visitors to the property and the Menomonee Valley.”
The plans for the Sportsbook venue:
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The Mohegan Tribe will officially step down from its management role at Atlantic City’s Resorts casino at the conclusion of 2024, both sides revealed on February 26.
End of deal:
This step will end the contract that the Mohegan Gaming Advisors, the gambling arm of the aforementioned tribe, offiically entered into with Resorts back in 2012, and which occured 6 months following the death of the co-owner of the casino, Dennis Gomes, the veteran gambling executive. In addition, Gomez’s death caused Resorts to be left without much-needed experience and knowledge to participate in the increasingly crowded casino market in the US northeast.
The successful operation of the tribe’s casinos in various markets involving Pennsylvania and Connecticut attracted Resorts, which led to it becoming the 1st casino in America to officially open outside of the Silver State during 1978. At the moment, the casino can thrive independently.
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