Share of tech firm Persistent Systems gained over 4% in Monday's opening trade after the company reported an 18.5% growth in its consolidated net profit to Rs 101.9 crore for the September 2020 quarter, from Rs 86 crore in the year-ago period.
During the quarter under review, revenue from operations of the mid-sized IT firm rose 13.9% on a year-on-year basis to Rs 1,007.7 crore, as against Rs 884.6 crore in the year-ago period.
Snapping its five-day losing streak, shares of Persistent Systems have risen as much as 4.18% to the intraday high of Rs 1,220 on BSE. The stock opened with a gain of 2.39% today at Rs 1,198 and also hit an intraday low of Rs 1,174, against the last close of Rs 1,171.
The stock price of Persistent Systems trades higher than 50, 100 and 200-day moving averages but lower than 5 and 20-day moving averages.
The stock has gained 76% since the beginning of the year. The market capitalisation of the mid-cap stock stood at Rs 9,064 crore, as of today's session.
Persistent Systems said its operating profits for the said quarter were up by 54.68% at Rs 122.43 crore YOY. The company has appointed Sandeep Kalra as its new CEO with effect from October 23, 2020, it added.
Anand Deshpande, Founder, Chairman and Managing Director of Persistent Systems said, " It is tremendously gratifying that as we celebrate our 30th anniversary, we see renewal and rejuvenation of the energy and ingenuity that are hallmarks of Persistent. We hit significant milestones, for the first time ever exceeding Rs 1,000 crore in revenue and Rs 100 crore in profit in one quarter".
Sandeep Kalra, Chief Executive Officer and Executive Director at Persistent Systems said," Company delivered yet another strong quarter on the back of our strong first quarter. Our continued focus on delivery excellence and expanding the value of our expertise across our accounts were the key drivers for this growth. The trust placed in me by the board and Anand to be the CEO inspires me to lead the team to continued new heights and advance Persistent's growth and leadership in the market."
The company's headcount at the end of September 2020 quarter was at 10,820.
Jyoti Roy DVP- Equity Strategist, Angel Broking said," We continue to remain positive on Persistent system post the strong set of numbers by other large-cap companies like Infosys, TCS and Wipro especially given the company's very high exposure to the high tech. and emerging vertical which is witnessing strong demand growth."
Last Friday, the company had announced the acquisition of the entire business of Capiot Software Inc., USA and its Indian subsidiary in a series of transactions for a consideration of $6.34mn.