Persistent Systems Limited is a trusted Digital Engineering Enterprise Modernization partner for software product companies and enterprises, combining deep technical expertise and industry experience. The Company work with companies who build and deploy software products and it partner with them across all phases of the product lifecycle. Their team is trained with its proprietary techniques, time-to-market accelerators, connectors, and integration services which help the customers to deliver products to their end users efficiently. The company delivers services, which enables to work with a wide-range of customers and develop, enhance, and deploy customer's software products. It provides software engineering and strategy services to help companies implement and modernize their businesses. It provides complete Digital Engineering solutions for Product & Platform Engineering, CX & Design-Led Transformation, Cloud-enabled Enterprise Modernization, Data & Artificial Intelligence, and Intelligent Automation. For providing industry best products and services company has partnered with leading Tech giants such as Microsoft, AWS, Google Cloud, IBM and Sales Force. Company is Gold Partner & Direct CSP with 6,536+ technologists to Microsoft with 5,050+ Certifications, Premier Partner with 2,146+ technologists with AWS with 1,250+ Certifications, Premier Partner with 844+ technologists with Google cloud with 1800+ certifications, Global Summit Partner with Sales Force with 2,450+ technologists and Platinum Business Partner with IBM with 2,031+ technologists. In total company holds 16,200+ certifications.

Company’s major business segments include BFSI, Healthcare & Life Sciences, Software, Hi-Tech and Emerging Industries with 375+ clients across various business verticals. It is helping market leaders transform their industries and it serves 6 of 10 Top Global Technology companies under Software and Hi-Tech business, 5 of 10 Largest banks in India and USA along with 30+ Fintech companies under Banking, Financial Services & Insurance business, 7 of 10 Top Scientific Instruments and Medical Devices companies, 5 of 10 Top Pharmaceutical companies, 4 of 10 Health providers and Payors and 4 of 10 Top Clinical Research Organizations under Healthcare and Life sciences.

The company has global presence with presence in 21+ countries including Canada, USA, India, Mexico, Costa Rica, UK, Ireland, Netherlands, Poland, Germany, France, Switzerland, Italy, Romania, Srilanka, South Africa, Malaysia, Singapore, Australia, and Japan.

Order Book:

Company’s order booking for the quarter ended on March 31, 2024, was at $447.7 million in Total Contract Value (TCV) and at $316.8 million in Annual Contract Value (ACV) terms.

Company’s Top 10 clients contributed 40% of the total revenue of the company and its large client counts who contributes more than $5M Annual Revenue reached 40 in Q4 of FY24.

Fundamentals:

Financial Results:

Company has reported Net Sales of at Rs 2,590.53 crore in March 2024 up 14.91% from Rs. 2,254.47 crore in March 2023. Its Quarterly Net Profit was at Rs. 315.32 crore in March 2024 up 25.37% from Rs. 251.51 crore in March 2023. Its EBITDA stands at Rs. 485.15 crore in March 2024 up 14.12% from Rs. 425.14 crore in March 2023. Persistent’s EPS has decreased to Rs. 20.73 in March 2024 from Rs. 33.65 in March 2023.

On Y-o-Y basis company reported revenue of $1,186.0M and PAT of ₹10.9B in Fy24 marking 14.5% and 18.7% jump respectively compared to previous year.

Key Updates:

1. Persistent has recently announced a long-term Strategic Partnership Agreement with Google Cloud for expanded reach across the US, India, UK, and Australia. This agreement focuses on driving joint go-to-market activities and accelerating digital transformation for enterprises globally. Using Google Cloud’s Gemini models, along with other innovative Google technologies, the Company will develop industry-specific solutions to drive broad-based GenAI adoption.
2. The company has launched GenAI Hub, an innovative platform designed to accelerate the creation and deployment of Generative AI (GenAI) applications within enterprises. This platform seamlessly integrates with an organization’s existing infrastructure, applications, and data, enabling the rapid development of tailored, industry specific GenAI solutions. GenAI Hub supports the adoption of GenAI across various Large Language Models (LLMs) and clouds, without provider lock-in.
3. It has recently achieved Premier Services Partner status with Snowflake, the Data Cloud company. As a Premier Services Partner, Persistent will be able to accelerate clients’ data journeys, enabling them to leverage the Snowflake Data Cloud’s flexibility, accuracy, and scalability.
4. Company has also launched Persistent iAURA, a suite of AI-powered data solutions engineered to catalyze business growth. iAURA empowers businesses with seamless deployment and precision in addressing data challenges for AI implementations. The solutions harness AI and ML to uncover hidden patterns, enabling data-driven decision-making, enhanced business intelligence, and automated data quality assurance and reconciliation.
5. It has also launched SASVA, a pioneering manageable and secure enterprise AI platform leveraging Large Language Models (LLMs) and Machine Learning (ML) to accelerate software releases, with faster time-to-market, and improved efficiency. It will be embedded into software engineering to efficiently address distinct use cases by preventing technical debt in new development, minimizing accumulated technical debt in mid- to late-stage software, and addressing complex scenarios in software sustenance and specialized industries with enterprise scale.
6. Adding to is service portfolio company has also launched an innovative Generative AI-powered Population Health Management (PHM) Solution in collaboration with Microsoft. Aligned with value-based care models, the Solution identifies Social Determinants of Health (SDoH) to determine patients’ non-clinical needs and better predict the cost of care driven by clinical conditions. It helps patients receive quality care at the right time and in the right place, while optimizing capacity and cost-effectiveness for healthcare providers and organizations.
7. Company has recently entered into a multi-year Strategic Collaboration Agreement with Amazon Web Services (AWS) to accelerate the pace of innovation and development of generative AI solutions for clients. It is already a long-standing AWS Partner and has a proven track record of early scale generative AI adoption across multiple industry verticals leveraging services like Amazon CodeWhisperer and Amazon Bedrock.
8. Company was recently selected for inclusion in the MSCI India Index, S&P BSE 100 and S&P BSE SENSEX Next 50 indices.
9. It has launched a unique open-source maintenance service to facilitate keeping an organization’s open-source software up to date with all patches, bug fixes, and incorporating the latest software releases. The service is comprised of a dedicated team of experts and specialists dealing with a wide range of complex software, equipped with the latest technologies, and backed by a knowledge base to help clients maintain their open-source software with all releases for the continuity of business operations.
10. Company has entered into a strategic partnership with Software AG (MDAX and TecDAX:SOW), a leader in enterprise software for integration, IoT, and automation. Persistent will develop joint solutions to accelerate operational excellence by modernizing applications and processes as well as moving data more easily across enterprises to unlock value. The partnership will address the challenges and opportunities that business leaders face as they transform their organizations.
11. It has also bagged Premier Tier Services Partner status within the Amazon Web Services (AWS) Partner Network (APN), further strengthening its relationship with AWS. Achieving the highest level of APN status demonstrates Persistent’s expertise and success in helping clients design, architect, migrate, modernize, and manage their AWS workloads while maximizing their cloud investments.
12. Company has further strengthened its partnership with Google Cloud by launching a suite of Google Cloud-powered Generative AI solutions. These offerings will equip clients throughout their AI journeys, from AI explorers to Generative AI disruptors, to understand how to successfully identify and implement these advanced technologies to their businesses at scale.
13. Company has inaugurated a state-of-the-art 5G Lab to provide a testing and development environment for network functions and product development activities for operators and network equipment vendors, as well as for Communications, Media, and IoT independent software vendors (ISVs). The Lab encourages interoperability and quick deployment to achieve faster monetization of 5G solutions. It will provide a setup to test end-to-end industry use cases in multi-cloud orchestration, Open RAN, MEC, and more.
14. It has opened Private Equity (PE) Value Creation Hub in Plano, Texas. The center will expand the Company’s onshore footprint and strengthen its presence in the rapidly evolving PE market by providing expertise across the full asset lifecycle for global PE firms and their portfolio companies.
15. Company has also strengthened its strategic relationship with Zscaler by reaching the Zenith partnership tier. Persistent aims to leverage its Zscaler partnership to assist clients in strengthening and modernizing their security posture with a zero-trust security model.
16. Company is also strengthening its relationship with Amazon Web Services (AWS) and becoming a collaborator for the latest Generative AI services from AWS. As part of its goal to drive developer productivity, Persistent plans to equip its 16,000-plus engineering organization to use Amazon Code Whisperer to build and deliver industry applications faster and more securely for enterprise clients.
17. Company has recently inaugurated its first office in Poland to expand its nearshore capabilities in Europe. Situated in Kraków, this new office will be the latest addition to the Company’s growing global delivery network. This delivery center will play a crucial role in driving digital transformation for clients across industries and provide local IT professionals ample opportunities to advance their careers by building cutting-edge software products and digital solutions.
18. Company has also launched a dedicated employee experience practice, based on the powerful Microsoft Viva platform and Generative AI. As part of its continued 360-degree partnership with Microsoft, Persistent is expanding its existing Azure Center of Excellence with Generative AI-based Modern Workplace solutions that promise to create a unified employee experience while improving the overall workplace.

In last 3 Years the stock gave a return of 207.34% as compared to the rise of Sensex and Nifty in the same period.

Persistent systems is one of the leading IT services provider companies with worldwide presence and serving leading sectors of world economy. Considering company’s growth over the years, growth of BFSI, Fintech, Healthcare, and other related sectors in upcoming years, proven financial track record, global presence, partnerships with leading tech platforms and growth of AI, ML and Dl in upcoming years, investors can invest in this company with buy in dips strategy.  

HET ZAVERI

info@smartinvestment.in

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