Persistent Systems announced that the necessary customary closing conditions with respect to acquisition of Capiot Software Inc., USA have been met by Persistent Systems Inc., USA, a wholly owned subsidiary of Persistent Systems on 07 November 2020 (IST). Consequently, Capiot Software Inc., USA has become a Wholly Owned Subsidiary Company ofPersistent Systems Inc., USA with effect from 07 November 2020.

Consequent to the above, Capiot Software, Singapore and Capiot Software, Australia which are the subsidiary companies of Capiot Software Inc., USA have become step-down subsidiary companies ofPersistent Systems Inc., USA as well.

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EBITDA jumped 13.2% to Rs 165.80 crore in Q2FY21 over Q1FY21. In US dollar terms, revenue rose 3.9% to $136.09 million in Q2FY21 over Q1FY21.

Profit before tax (PBT) in Q2 September 2020 stood at Rs 137.51 crore, rising 12.7% from Rs 122.04 crore in Q1 June 2020. Current tax expense rose 1.25% to Rs 43.61 crore in Q2FY21 as against Rs 43.07 crore in Q1FY21.

Speaking on the Q2 performance, Dr Anand Deshpande, the founder, chairman and managing director (MD) of Persistent Systems, has said that: 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 1000 crore in revenue and Rs 100 crore in profit in one quarter. The growth we see across our business is the result of a shared passion through all of Persistent for innovation and helping our clients not just meet but exceed their business expectations. We are looking forward to the next phase of our growth journey, as Sandeep Kalra takes over the CEO role. I wish him all the best and look forward to continuing to work with him on the future of Persistent.

Meanwhile, the company announced the appointment of Sandeep Kalra as its new CEO, effective immediately.

Sandeep Kalra, the chief executive officer (CEO) and executive director (ED) of Persistent Systems, commented: We delivered yet another strong quarter on the back of our strong Q1. Our continued focus on delivery excellence and expanding the value of our expertise across our accounts were the key drivers for this growth. Winning the 2020 ISG Star of Excellence speaks volumes about the strength of our strategy and client focus, as the award is based directly on client feedback. The trust placed in me by Anand and the board to be the CEO inspires me to lead the team to continued new heights and advance Persistent's growth and leadership in the market.

Persistent Systems is a global solutions company delivering digital business acceleration, enterprise modernization and digital product engineering for businesses across all industries and geographies.

The counter also witnessed some bit of value buying. The stock had slipped 9.84% in the past five sessions to end at Rs 1,171 on Friday, from its recent closing high of Rs 1,298.70 recorded on 16 October 2020.

On a year-to-date (YTD) basis, the stock has surged 80.36% while the benchmark S&P BSE Sensex lost 2.31% during the same period.

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The Board of Persistent Systems at its recently concluded meeting on 24 October 2020 has appointed Sandeep Kalra, Executive Director and President as the Chief Executive Officer (CEO) of the Company with effect from October 23, 2020. Accordingly, his designation has been changed to'Executive Director and Chief Executive Office'.

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Net profit of Persistent Systems rose 18.50% to Rs 101.99 crore in the quarter ended September 2020 as against Rs 86.07 crore during the previous quarter ended September 2019. Sales rose 13.92% to Rs 1007.75 crore in the quarter ended September 2020 as against Rs 884.60 crore during the previous quarter ended September 2019.

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