Share price of this large-cap IT firm hit a new 52-week high of Rs. 7,897.6 on January 18th. However, it experienced a decline of more than 2 percent during the morning session, dropping to Rs. 7,562 at 10:00 am on Thursday.
With a market cap of Rs. 59,109 crore, Persistent Systems Ltd. has given over 54 percent returns in the past six months and nearly 94 percent in the last one year. So far, the company has given over 4.9 percent of returns in 2024.
According to the recent filings in the stock exchanges, the Board of Directors (BoD) of Persistent Systems Ltd. may consider a proposal of alteration in the share capital of the company by sub-division or split of the existing equity shares having a face value of Rs. 10 each, as may be determined by the BoD at the meeting scheduled to be held on January 19.
Earlier this month, Persistent Systems, a global Digital Engineering and Enterprise Modernization leader, announced a multi-year Strategic Collaboration Agreement with AWS (Amazon Web Services) to accelerate generative AI adoption.
This strategic collaboration with AWS will help the company to further increase the impact it delivers to its clients that are embracing generative AI.
The company will also announce its December quarter earnings and interim dividend (if any) for FY23-23 on Saturday, January 20, 2024.
In terms of financials, Persistent Systems has delivered a good profit growth of 24.6 percent CAGR over the past five years and its annual revenue growth of 43.84 percent outperformed its 3-year CAGR of 31.2 percent.
The company’s revenue from operations, on a year-on-year basis, grew by 17.72 percent from Rs. 2,321 crore in the June 2023 quarter to Rs. 2,412 crore in the September 2023 quarter, accompanied by a 19.66 percent increase in net profit from Rs. 228.77 crore in June 2023 quarter to Rs. 263.27 crore in September 2023 quarter.
As of September 2023, FIIs hold 21.34 percent of the shares, whereas DIIs hold 28.67 percent of the shares in the company, aggregating to 50.01 percent of the institutional holdings.
Persistent Systems Limited offers software engineering and strategy services to assist companies in implementing and modernising their businesses.
In FY23, the company liquidated a major portion of the investment to fund the MediaAgility acquisition and investment in property along with acquiring 100 percent shares of MediaAgility Inc., USA, and resultantly, acquired its subsidiaries in the UK, Mexico, and Singapore as well.
Written by Shivani Singh
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