Persistent Systems Limited: history, ownership, mission, how it works & makes money

A Brief History of Persistent Systems Limited

Founded in 1990, Persistent Systems Limited is a technology services company headquartered in Pune, India. The company initially focused on software development and has since evolved into a leader in software product development and technology services. As of the fiscal year ending March 2023, Persistent Systems reported a revenue of INR 12,197 million, marking an increase of 21.7% over the previous fiscal year.

In 1994, Persistent became a pioneer in the Y2K (Year 2000) software solutions, which significantly boosted its reputation and client base. The company was one of the first IT firms in India to embrace product engineering services, emphasizing its strength in creating robust software products for various industries.

Persistent Systems went public in 2010 and is listed on the National Stock Exchange (NSE) of India and the Bombay Stock Exchange (BSE) under the symbol PERSISTENT. The Initial Public Offering (IPO) was priced at INR 350 per share.

Over the years, Persistent Systems has engaged in various strategic acquisitions, expanding its capabilities and market presence. Notable acquisitions include:

In recent years, Persistent Systems has focused on digital transformation, cloud services, and data management. For the fiscal year 2023, the company reported a net profit of INR 1550 million, a growth of 8.2% year-over-year, indicating a healthy profit margin. The operating margin stood at 19.5%.

As part of its emphasis on technology innovation, Persistent Systems has invested heavily in research and development. In 2022, the R&D expenditure was approximately INR 1,200 million, representing about 9.8% of its total revenue.

Persistent Systems has developed long-standing relationships with major global companies, including Microsoft, IBM, and Salesforce. The company reported that as of March 2023, it had over 450 active clients, which included several Fortune 500 companies.

The firm has also been recognized for its corporate governance and sustainability practices, receiving accolades such as the “Great Place to Work” certification in 2023 and being listed in the “Top 100 Best Companies to Work For” by Forbes India.

As of October 2023, Persistent Systems' stock price was approximately INR 5,500 per share, reflecting a 24% increase year-to-date. The company's market capitalization stood at around INR 271 billion.

With a diversified portfolio and a commitment to innovation, Persistent Systems Ltd. continues to play a significant role in the global IT landscape, driving transformations for its clients across various sectors.

A Who Owns Persistent Systems Limited

Persistent Systems Limited, listed on the National Stock Exchange of India (NSE) as PERSISTENT and on the Bombay Stock Exchange (BSE) as 538669, is a prominent player in the software and services industry. As of October 2023, the ownership structure of Persistent Systems reflects a mix of institutional and retail investors, along with significant stakes held by company executives and insiders.

Ownership Distribution

Promoter Shareholding

The promoter group of Persistent Systems, primarily led by the founder Dr. Anand Deshpande, holds a substantial portion of shares. The promoters have consistently been supportive of the company's long-term growth and development strategies.

Institutional Investors

Institutional ownership is a significant aspect of Persistent Systems' shareholder base. The presence of foreign and domestic institutional investors indicates sustained confidence in the company's performance. Major institutions include:

• BlackRock: Owns approximately 5.06%.
• HDFC Asset Management: Holds around 4.50%.
• ICICI Prudential Mutual Fund: Possesses about 3.20%.

Recent Financial Performance

In the financial year ending March 2023, Persistent Systems reported:

• Total Revenue: ₹3,088 crore (an increase of 23% year-on-year).
• Net Profit: ₹450 crore (up by 31% from the previous fiscal year).
• EPS (Earnings Per Share): ₹55.80, reflecting strong growth prospects.

Stock Performance Overview

As of October 2023, the stock price of Persistent Systems is approximately ₹3,350 per share. The stock has shown an appreciation of about 88% over the past year, outperforming the broader Nifty IT index, which has risen by roughly 38% during the same period.

Conclusion

Overall, the ownership distribution of Persistent Systems Limited reveals a strong foundation of promoter support supplemented by robust institutional backing. This ownership mix positions the company well to navigate industry challenges while capitalizing on growth opportunities.

Persistent Systems Limited Mission Statement

Persistent Systems Limited is focused on delivering innovative technology solutions and services that empower businesses to navigate their digital transformation journeys effectively. Their mission statement emphasizes driving customer success through deep-rooted expertise in software development and consulting, alongside a commitment to fostering a collaborative and engaging environment for employees.

As of the fiscal year ended March 31, 2023, Persistent Systems reported a revenue of ₹3,131 crores (approximately $378 million), showcasing a significant year-on-year growth of 30%. This growth reflects the company's strategy to enhance its offerings in areas such as cloud services, AI, and IoT.

The company’s mission is encapsulated in its commitment to developing solutions that not only meet but exceed client expectations. They aim to leverage modern technologies to create efficient solutions that drive business growth for their clients across various sectors, including healthcare, finance, and telecommunications.

Persistent Systems has outlined key areas where it channels its mission-driven focus:

• Enhancing customer experience through tailored solutions.
• Investing in employee skill development and engagement.
• Adopting sustainable practices in technology delivery.
• Championing innovation in software engineering.

With a workforce of over 19,000 employees as of March 2023, Persistent Systems places a strong emphasis on creating a conducive work environment. This commitment is reflected in their employee engagement scores, which have consistently ranked above 85% in recent internal surveys.

Additionally, the company is actively pursuing global expansion, with approximately 50% of its revenue coming from international markets, primarily in North America and Europe. Persistent Systems has also made strategic acquisitions that align with their mission to enhance technological capabilities and bolster market presence.

How Persistent Systems Limited Works

Persistent Systems Limited operates in the field of software development and IT services, offering a range of solutions that drive digital transformation for enterprises globally. The company focuses on product engineering, enterprise modernisation, and data management.

As of the fiscal year 2023, Persistent Systems reported a revenue of INR 5,626 crore, showcasing robust growth of 23% over the previous year. The company maintained a strong operating margin of 17.3% during this period.

Persistent’s clientele includes major players across various sectors such as healthcare, financial services, and technology. The company's strategic partnerships with organizations like Microsoft, Salesforce, and AWS help expand its service capabilities. In FY2023, Persistent Systems added 60 new clients, bringing the total client count to over 700.

Persistent Systems utilizes an agile development methodology, enabling it to deliver iterative solutions promptly. The company's focus on innovation is evident from its investment in research and development, which accounted for approximately 8% of total revenues in FY2023.

Furthermore, Persistent Systems has a strong commitment to sustainability and social responsibility. The company is actively engaged in various community development projects, reaffirming its dedication to corporate social responsibility.

The workforce of Persistent Systems is a crucial asset, comprising over 22,000 employees as of FY2023. The company invests in employee training and development, with over INR 20 crore allocated for skill enhancement programs in the past year.

Persistent Systems’ stock performance reflects its strong financial health. As of October 2023, the company’s stock price was approximately INR 4,950, with a market capitalization of around INR 1.1 lakh crore. The stock has shown a year-to-date growth of 30%, outperforming the broader Nifty IT Index, which grew by 10% in the same period.

In summary, Persistent Systems Limited functions through a blend of innovative software solutions, strategic partnerships, and a commitment to sustainable growth. The company's agility and focus on client needs have positioned it well in the competitive IT services landscape.

How Persistent Systems Limited Makes Money

Persistent Systems Limited (NSE: PERSISTENT) is a global software services company headquartered in Pune, India. The company primarily generates revenue through a combination of software development services, IT consulting, and product engineering. In the fiscal year ended March 2023, Persistent reported a total revenue of ₹3,523 crore, reflecting a year-over-year increase of 19.2%.

The revenue streams of Persistent Systems can be categorized into the following segments:

• Software Development Services
• IT Consulting
• Product Engineering Services
• Cloud Services
• Data and Analytics

Each segment contributes uniquely to the overall financial performance. Below is a breakdown of their revenue contributions for FY 2023:

Persistent Systems has strategically aligned its service offerings to meet the demands of various industries, including healthcare, finance, and telecom. The company serves over 500 global clients, with a notable presence in North America, which constitutes approximately 64% of their revenue in FY 2023. The company has established strong partnerships with leading technology firms like Microsoft, AWS, and Salesforce, further enhancing its service portfolio and market reach.

In terms of profitability, Persistent Systems reported a net profit of ₹558 crore for the fiscal year 2023, with a corresponding net profit margin of 15.8%. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for the same period stood at ₹751 crore, translating to an EBITDA margin of 21.3%.

Persistent's focus on research and development plays a significant role in its revenue generation. The company allocated about 10% of its revenue towards R&D in FY 2023, which is crucial for maintaining its competitive edge in product engineering and software innovation.

As of the latest financial statements for Q2 FY 2024, Persistent Systems reported a revenue of ₹950 crore, showing a quarter-over-quarter growth of 4.2%. The company's order book for the same quarter was valued at ₹2,200 crore, indicating strong future growth potential.

Given the current trends in digital transformation and the increasing demand for cloud-based solutions, Persistent Systems is well-positioned to expand its market share. The ongoing investments in AI and machine learning technologies are expected to contribute significantly to its future revenue growth.