Persistent Systems Hits Jackpot With Record $475M Deal
Persistent Systems is an IT company in India. It’s into software development, consulting, and other tech services. The company recently announced their earnings for the second quarter (Q2) of this year, and things are looking pretty good for them.
They’ve landed their highest-ever deal worth $475 million. This deal is a contract, and the value of it is called the Total Contract Value (TCV). This TCV has jumped from $380 million in the previous quarter. That’s a significant boost, and it’s one of the reasons the company’s stock price is doing well.
The company’s net profit, which is the money they made after all expenses, went up by about 20% compared to the same time last year. Also, their revenue, the total money they brought in, went up by 9.4% to Rs 2,448 crore.
You might be wondering, where does most of their money come from! Around 80% of Persistent Systems’ revenue comes from two sectors: BFSI and hi-tech verticals. Now, BFSI stands for Banking, Financial Services, and Insurance. Hi-tech verticals are basically advanced technology sectors, like cloud computing or AI. So, these are the two big areas that feed Persistent Systems’ money jar.
The stock price of Persistent Systems has risen by 3%, and it’s currently trading at Rs 5,838 on the National Stock Exchange (NSE). It’s worth noting that while most IT stocks are under pressure, Persistent Systems has gone up by more than 50% this year.
There’s a slight hiccup, though. The company’s EBIT margin, a measure of profitability, dropped a bit to 13.7% from 14.9% in the last quarter. But don’t worry, the company expects it to get better in the coming months. If you’re thinking about trading in IT stocks, Persistent Systems looks like a strong performer right now. But do not rely on this article only, do your own research before investing!