Shares of Persistent Systems, an IT firm, saw a strong upward spike during Thursday's intra-day trade after a string of losses over the previous four trading sessions. The strong rally in the stock came after the company's Q3 numbers came in line with analyst estimates.
During the trade, the stock got off to a lower start at ₹3,950 apiece against the previous close of ₹3,959.6, but in the early trade, it gained momentum and climbed 5.41% to hit an intraday high of ₹4,174.5. At current levels, the stock is trading at a four-week high.
At 11:45 a.m., the stock was trading at ₹4,165, up by 5.18% on the NSE.
On Wednesday, the company reported a 35.22% jump in its consolidated net profit at ₹237.9 crore for the December ending quarter. The company posted a net profit of ₹176.4 crore in a similar quarter of last year.
The revenues from operations came in at ₹2,169 crore in Q3 FY23, a growth of 45.37 percent compared to ₹1,492 crore during the same period of the previous year.
The total expenditure during the December quarter jumped 42.46 percent to Rs. 1,768 crore, compared with Rs. 1,241 crore in the corresponding period last year.
The company reported an operating profit of ₹402 crore in Q3, which was 60.15% YoY higher than a year ago quarter and 9.23% higher than the preceding quarter.
The order booking for the quarter was at $440.2 million in total contract value (TCV) and $326.3 million in annual contract value (ACV) terms.
In addition, the board of directors declared an interim dividend of ₹28 per share for fiscal year 2022-2023.
Meanwhile, on January 2, the company announced a partnership with Microsoft to accelerate its growth.
Persistent Systems will bolster its ITES 360 relationship with Microsoft by using its technologies for increasing agility and augment the next phase of growth for the company.
The company will utilize the Microsoft Viva platform to enhance the employee experience, utilising the advanced analytics baked into the platform, the company said.
Over the last one year, the stock was down marginally by 2.86%, while in the last three-year period, the stock delivered a staggering return of 492%, climbing from ₹703.35 apiece to the current level of ₹4,165. Furthermore, over the last five years, the stock has returned an astounding 438.50% to its shareholders.
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