Persistent Systems (PERSISTENT) Q3 24/25 earnings summary

Executive summary

• Achieved Q3 FY25 revenue of $360.2 million, up 19.9% year-on-year and 4.3% quarter-on-quarter, marking the 19th consecutive quarter of sequential growth, driven by AI-led, platform-driven services.

• Filed 20+ AI-related patents and launched innovative solutions with Microsoft and Google Cloud, enhancing proprietary platforms SASVA, iAURA, and GenAI Hub.

• Awarded AA+ (Stable) credit rating by ICRA, included in the Dow Jones Sustainability World Index, and received multiple ESG and corporate governance awards.

• Declared an interim dividend of INR 20 per share for FY25, up from 16 in FY24, maintaining a consistent payout ratio.

• Reorganized US business, transferring contracts and employees to the parent, impacting revenue comparability.

Financial highlights

• Q3 FY25 revenue: $360.2M, up 19.9% YoY and 4.3% QoQ; in rupee terms, INR 30,622.8 million, up 22.6% YoY.

• EBIT margin at 14.9%, up 90 bps sequentially and 35 bps YoY; PAT at INR 3,729.9 million, up 30.4% YoY; EPS at Rs 24.30, up 28.4% YoY.

• TTM revenue: $1,344.8M, up 17.0% YoY; 9M FY25 revenue: $1,033.9M, up 18.1% YoY; 9M PAT: 10,044.0M, up 29.1% YoY.

• OCF to PAT ratio at 84.4% for Q3 FY25; cash and cash equivalents as of Dec 31, 2024, at ₹3,697.96 million.

• Net cash from operating activities for the nine months was ₹5,681.09 million.

Outlook and guidance

• Confident in achieving $2 billion revenue by FY27 and targeting $5 billion by FY31, with a strategic roadmap focused on scaling verticals and deepening top 100 customer relationships.

• Margin improvement of 200-300 basis points in the medium term remains an aspiration.

• Continued investment in AI, platformization, and differentiated IP to drive future growth and margin expansion.

• Strong order book and healthy pipeline provide revenue visibility.

• Capital requirements met through operating cash flows, borrowings, and equity.