Persistent Sys
This Pune based company posted a good set of numbers for Q1FY14. Its consolidated rupee revenue at Rs.357 crore was up 19% (YoY) and 7% (QoQ) and in dollar terms at US$63 million, up 15% (YoY)n and just 1.5% (QoQ). PBT came in at Rs.80 crore, up 40% (YoY) and 11% sequentially and PAT at Rs.57 crore, was up 37% (YoY) and 10% QoQ. The overall increase in revenue from products engineering and platforms was 4.5% comprising 3% volumes growth and 1.5% in billing rates. Onsite revenue showed a 3.9% rise in billing rates while offshore revenue dropped 0.8%. IP revenue, sequentially dropped 13% but YoY grew 24%.
It recruited 174 new employees and applied for 260 HI-B visas of which 184 were selected. The company gave a 3.5% pay hike in USA during the quarter. Rise in direct costs thus pulled down the EBITDA margin from 24.9% to 21.8% (QoQ). Due to rupee fall, the company had a forex gain of Rs.18 crore and this helped the overall bottomline and NPM, which rose marginally from 15.5% to 16%. Cash at end of Q1 stood at Rs.457 crore and the forex cover in terms of forward contracts was at Rs.11 crore at an average rate of Rs.58.17/$. In Q2, major impact could come from offshore salary hikes, hiked around 8-9%, which were effective from 1st July. It has recruited around 500 from various campus interviews and these will join over Q2 and Q3 and will also add to the cost. But this could be more than offset by the depreciating rupee.