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Highlights of the call by Capital Mkt: In USD terms, The Revenue grew by 3.9% QoQ (17% YoY) to USD 72.64 million for the quarter ended March 2014 led by the sharp 14.4% QoQ growth in IP led business to USD 14.26 crore. Also, Revenues from the Services business grew by 1.6% QoQ to USD 58.38 million. Notably, The Revenues grew by 15.2% YoY to USD 237.82 million for the year ended March 2014. In INR terms, The Revenues grew by 3.2% QoQ (33.8% YoY) to Rs 446.74 crore for the quarter ended March 2014 and PAT grew by 4.7% QoQ (29.5% YoY) to Rs 67.19 crore for the same period. Also, The Revenues grew by 28.9% YoY to Rs 1669.15 crore for the year ended March 2014 and PAT grew by 33% YoY to Rs 249.3 crore for the same period. The sharp growth in the IP is on the back of increase in momentum in the Radia business during the quarter. The services business growth is on the back of excellent 8.4% QoQ growth in onsite revenue on the back of 9.5% volume growth during the quarter. The Offshore billing grew by 1.5% qoq but the offshore volumes was down by 2.1% during the quarter. The Margins had headwinds from the adverse currency movement, project travel cost and lower utilizations despite the tailwinds from increase in the IP led business during the quarter. The new customer additions were better than previous quarter. It announced creation of its Silicon Valley-based Accelerite, a business unit which will take a portfolio of Persistent's products and related solutions to market. It acquired CloudSquads, a company specialized in Social Community Platform offerings. It Invested in Hyginex, a hand hygiene technology startup based in California through Persistent Venture Fund. The effective tax rate expected to be 27-28% on annualized basis. The new Enterprise customers are to come and contribute more in the next fiscal. The Company expects FY'15 Revenue growth to be better than the FY'14 in USD terms. The platform services business to grow at steady pace and the IP led business to accelerate the overall growth in the short-term. The Company is expected to invest the margin gains (such as utilizations) into the business such as newer technologies etc. The Cash and Cash equivalents were at Rs 631.1 crore as on 31stMarch 2014 compared to Rs 594.9 crore as on 31stDecember 2014. The Board of Directors approved Rs 48 Million towards its Annual contribution to Corporate Social Responsibility (CSR) which will be paid out in FY 2014-15. The Company declared final dividend of Rs 4 per share thereby total dividend amounting to Rs 12 per share (Payout ratio 22.5%) as against Rs 9 per share last year (Payout ratio 22.3%) |