Persistent Systems (PERSISTENT) Q1 24/25 earnings summary

Executive summary

• Achieved 17th consecutive quarter of sequential revenue growth, with Q1 FY25 revenue at $328.2M, up 16% YoY and 5.6% QoQ, driven by innovation, AI-led services, and platform-driven strategies.

• Leadership transition: Vinit Teredesai appointed CFO, Anjali Joshi as independent director, and Roshini Bakshi retired.

• Strengthened partnerships with Google Cloud and Snowflake, acquired Starfish Associates to enhance AI-powered communications.

• Recognized as a leader in Digital Engineering and Salesforce Ecosystem by ISG and for governance by Institutional Investor.

• Founder Dr. Anand Deshpande received the ACM Presidential Award for contributions to computing.

Financial highlights

• Q1 FY25 revenue: $328.2M (INR 27,377.1M), up 16% YoY; EBIT margin at 14%; PAT at INR 3,064.2M, up 33.9% YoY; EPS at INR 20.10.

• TTM revenue at $1,231.3M, up 14.3% YoY; TTM EBIT margin at 14.2%; TTM PAT margin at 11.4%.

• Gross profit margin for Q1 FY25 at 33.0%, slightly down YoY.

• Operating cash flow to PAT: 49.3% (vs. -23.5% YoY).

• Standalone revenue for the quarter was ₹26,913.96M, with net profit at ₹2,479.41M.

Outlook and guidance

• Aspires to maintain FY24 margin profile and targets 200–300 bps margin improvement over the next couple of years.

• Confident in delivering healthy revenue growth for FY25, with margin improvement expected as cost optimization and revenue enhancement initiatives take effect.

• US business reorganization impacts revenue comparability with previous periods.