#persistent system

Supply-side concerns remain but management remains confident of delivering sustainable margin in the near term because of strong growth and better utilization | Persistent System Q3FY22 Conference Call Highlights

· Persistent reported INR revenue of 1,491.7 Cr, up 10.4% QoQ, up 38.7% YoY and USD revenue of 199.1mn, up 9.2% QoQ, up 36.2% YoY. · EBIT margin 14%, up 10bps QoQ. Gross margin improved by 24 bps q-o-q to 33.8% in Q3FY2022 despite strong hiring over the past four consecutive quarters, aided by higher utilization and strong revenue growth. EBITDA margin improved by 23 bps q-o-q to 16.8%. ·…

Indian Software companies are getting segregated into two types: The Services Ones (Largecap ones: TCS/Wipro/Infosys/HCL and mid-cap ones like MindTree, TechMahindra) and ones which have non-liner growth. The typical non-linear growth ones have started getting more than one-fourth of their revenue from non-services revenue. Examples: Accelya Kale, Majesco, Persistent Systems.

Interestingly these can be further classified into Subscription revenue driven ones and lumpy transformational engagement driven ones. I would put Accelya Kale into the subscription revenue camp. It is able to do this kind of subscription revenue without incurring the typical cost of a SaaS Subscription business (an example of this would be Salesforce or WorkDay) due to the vertical it operates in (Finance Ops of Airline Companies). And maybe this explains the string dividend payout done by the company. Persistent Systems would be in the other bucket. 

  Persistent Systems are holding yearlong celebrations to honor the centenary year of Alan Turing; the father of computer science. 

The inaugural event of the Centenary Celebrations will be held at the Dewang Mehta Auditorium, Persistent Systems Limited, Senapati Bapat Road, Pune. The highlights of this event include a keynote address by Dr. Mathai Joseph, Advisor TCS and a talk on Turing’s Theory of Computation by Vivek Kulkarni, Principal Architect at Persistent Systems. The inaugural session will be followed by a series of monthly Techtalks on the first Saturday of the month, where experts will talk about the work and influence of different Turing Award winners.

“We are delighted to be celebrating Alan Turing’s centenary year. Alan Turing has contributed so much to computer science and published some of the most important papers in computer science - Computable Numbers, with an Application to the Entscheidungs problem and Proposed Electronic Calculator amongst others. At Persistent Systems, we are celebrating his contributions with a host of activities that will run throughout the year. We have many notable speakers who will talk on Turing’s contributions and the impact he has had on modern day computers,” said Dr. R. Venkateswaran, Chief Technology Officer, Persistent Systems.

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