Persistent Systems, one of India’s leading information technology services providers, will announce its financial results on April 24 for the fourth quarter ended March 31, 2016.
Persistent Systems, one of India’s leading information technology services providers, will announce its financial results on April 24 for the fourth quarter ended March 31, 2016.
IIFL estimates that the company’s net profit is expected to be at Rs. 84 crore, a 7.5 % rise qoq and 10.8 % on yoy basis.
As per IIFL’s forecast, the company is expected to register a net revenue of Rs. 628 crore, surging 26.1 % yoy and 6.0 % qoq.
Operating Profit Margin of the company is likely to be at 18.8 %, a 144 bps fall on yoy basis.
Persistent is expected to post strong dollar growth of 7‐8% qoq driven by improvement in underlying organic growth momentum and partial revenue contribution from the recently announced IBM deal.
The fourth quarter of a fiscal year has typically been a soft period for India IT companies. According to IIFL, IT will experience mixed results; divergence on account of client/sector specific issues, ability to capitalize on increasing digital spends, success in client mining/acquisition and execution progress on large deals in hand. The reported dollar revenue growth would also be impacted marginally from the adverse cross currency movements during the quarter.
Our preview coverage universe of 374 companies, representing ~75% of India’s equity market cap is expected to report 4.2% yoy drop in net profit in Q4 FY16. On a qoq basis, profits will rise by 17% on account of low base of preceding two quarters, which had witnessed sequential PAT declines.
IIFL estimates that the company’s net profit is expected to be at Rs. 84 crore, a 7.5 % rise qoq and 10.8 % on yoy basis.
As per IIFL’s forecast, the company is expected to register a net revenue of Rs. 628 crore, surging 26.1 % yoy and 6.0 % qoq.
Operating Profit Margin of the company is likely to be at 18.8 %, a 144 bps fall on yoy basis.
Persistent is expected to post strong dollar growth of 7‐8% qoq driven by improvement in underlying organic growth momentum and partial revenue contribution from the recently announced IBM deal.
The fourth quarter of a fiscal year has typically been a soft period for India IT companies. According to IIFL, IT will experience mixed results; divergence on account of client/sector specific issues, ability to capitalize on increasing digital spends, success in client mining/acquisition and execution progress on large deals in hand. The reported dollar revenue growth would also be impacted marginally from the adverse cross currency movements during the quarter.
Our preview coverage universe of 374 companies, representing ~75% of India’s equity market cap is expected to report 4.2% yoy drop in net profit in Q4 FY16. On a qoq basis, profits will rise by 17% on account of low base of preceding two quarters, which had witnessed sequential PAT declines.
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