Persistent Systems Ltd delivered an exceptional performance in Q4 FY25, reflecting strong operational momentum and a sharp rise in profitability. The company reported a significant revenue jump and robust improvement across most financial metrics, signaling solid business fundamentals and consistent demand.
Result Summary:
- Revenue up 95.45% YoY
- Net Profit up 56.36% YoY
- Operating Profit up 39.66% YoY
- Other Income down 54.52% YoY
- Margins slipped to 13.23% from 18.51%
Persistent Systems Q4 FY25 Financial Highlights (₹ in Million)
| Metric | Q4 FY25 (₹ Mn) | Q4 FY24 (₹ Mn) | % Change YoY |
|---|---|---|---|
| Sales | 31,875.51 | 16,309.02 | 95.45% |
| Other Income | 160.00 | 351.82 | -54.52% |
| Operating Profit (PBIDT) | 4,215.78 | 3,018.69 | 39.66% |
| Net Profit (PAT) | 2,876.40 | 1,839.57 | 56.36% |
| PBIDT Margin | 13.23% | 18.51% | -28.55% |
Revenue Surges by 95.45%
The topline for the quarter ended March 2025 stood at ₹31,875.51 million, marking a massive 95.45% YoY growth compared to ₹16,309.02 million in Q4 FY24. This growth highlights the company’s strong execution and expansion across service lines and geographies.
Profitability Expands Across the Board
- Operating Profit (PBIDT) rose by 39.66%, reaching ₹4,215.78 million, compared to ₹3,018.69 million in the same quarter last year. This reflects improved cost efficiency and better realization on projects.
- Net Profit (PAT) jumped by an impressive 56.36% to ₹2,876.40 million, up from ₹1,839.57 million in Q4 FY24. This jump can be attributed to strong operating leverage and disciplined financial management.
Interest and Depreciation
Interest expenses increased sharply by 263.15% YoY to ₹147.33 million, likely due to borrowings or leasing obligations. Depreciation expenses also grew moderately by 13.73% YoY to ₹470.80 million.
Taxation Trends
Tax expenses remained stable at ₹721.25 million compared to ₹724.58 million last year, while deferred tax moved into a credit of ₹26.36 million against a debit of ₹34.37 million earlier.
Margins Under Pressure
Despite the strong growth, PBIDT margins for the quarter contracted to 13.23% from 18.51%, mainly due to rising costs and a drop in other income, which fell by 54.52%.
Persistent Systems has demonstrated impressive growth in Q4 FY25. However, investors may want to keep an eye on the declining margins and rising finance costs, which may impact profitability if the trend continues.
Disclaimer: This blog is for informational purposes only and should not be considered as financial advice or any buy/sell recommendations.
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