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1. VINATIORGA
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Persistent Systems company details report

Incorporated in 1990, Persistent Systems Limited is amongst the world’s leading providers of product engineering services, platformbased solutions and IP (intellectual property) based software products for global customers. It derives a significant portion of revenue from export of software services and products. It is engaged in providing product and services such as Product & Platform Engineering, CX (customer experience) & Design-Led Transformation, Data & Artificial Intelligence, Cloud-enabled Enterprise Modernization. On 4th May 2022, the company completed its acquisition of MediaAgility Inc., USA and its subsidiaries in the UK, Mexico, and Singapore. MediaAgility is a global cloud transformation services provider with deep expertise in building scalable, cloud-based solutions as a Google Cloud Premier Partner. The total purchase consideration payable for the acquisition of MediaAgility is $71.7 million. MediaAgility had a consolidated revenue of $25.5 million as on LTM December 2021. On 1st March 2022, they acquired businesses from Data Glove IT Solutions Private Ltd, India, Data Glove Inc., USA and its affiliate entities based out of Australia, UK, Singapore and Costa Rica (together referred to as “Data Glove Group”) for $90.5 million. Data Glove Group specializes in providing services across the entire Microsoft Product Suite including Azure based digital transformation, data modernization, cloud advisory services, business application innovation, workspace modernization and intelligent automation. They had total annual revenue for CY21 of $48.9 million and over 700 employees worldwide. In Q4 FY24, the company launched ‘SASVA’, a manageable and secure AI platform that solves complex and specialized use cases in the enterprise setting. It revolutionizes software engineering, with an AI-powered platform leveraging Large Language Models and Machine Learning. It drives enhanced efficiency and agility for organizations across industries by automating and optimizing software engineering lifecycle. During Q2 FY25, they acquired 100% stake of Arrka, a Pune based company renowned for its decade-long privacy expertise, its pioneering Data Privacy Management platform and growing expertise in AI governance. Arrka’s data privacy management platform enables organizations to manage their data privacy risks and comply with multi-jurisdictional legal & regulatory requirements in an integrated manner. The consideration stood at ~₹14 crore and FY24 revenue of the company was ~₹3 crore.

Revenue Segment wise

#SALES #GROWTH 5 Year CAGR 23.9%

Revenue during FY24 stood at ₹9,822 cr, up by 17.6%. The TCV grew by 13% to $1,829 mn in FY24, out of which new deals increased by 19% to $1,130 mn. Despite a weaker demand environment coupled with higher furloughs, the growth was robust due to uptick in existing as well as new client accounts, deal ramp ups along with a healthy deal pipeline, increased efficiency and higher employee utilisation. The growth was broad-based across verticals & geographies. Healthcare is leading the growth followed by BFSI & Technology. Revenue in 9M FY25 was ₹8,697 cr, up by 20%. TCV in 9M stood at $1,586 mn, higher by 15% YoY. Out of this, new TCV was $1,034 mn, up by 25% YoY. During Q3 FY25, they won their highest ever deal of $150 mn with tenure of 7 years from a US-based financial service company. The growth was broad based across verticals & regions led by Healthcare, North America & RoW. Client growth was robust across buckets.

#EBITDA #GROWTH 5 Year CAGR 24.7%

EBITDA during FY24 was ₹1,676 cr, up by 10% YoY. Employee costs were higher by ~20% as the company continued to invest in freshers. The sub-contracting costs were up by 10%, due to the initial ramp up of certain large deals, which led to the onsite effort rise. Despite these, profitability was higher as revenue growth was strong along with increased utilisation and efficiency. EBITDA stood at ₹1,474 cr in 9M FY25, up by 21% YoY. Employee costs were higher by 14% YoY while cost of professionals were higher by 63% due to uptick in onsite resources owing to ramp up of a healthcare deal. Other expenses were higher by 11% YoY.

#PAT #GROWTH 5 Year CAGR 25.5%

PAT stood at ₹1,093 cr, up by 19% YoY. Finance costs reduced by 1% due to lower borrowings, while depreciation expenses were up by 14%, due to higher facilities. Other income were higher by ~82%. Higher revenue growth & income and cost optimization helped offset the higher expenses leading to strong growth in profits. Forex gain during the year was ₹8.5 cr as compared to a loss of ₹13.3 cr. PAT in 9M FY25 stood at ₹1,004 cr, an increase of 29% over 9M FY24. Finance costs were higher by 32% YoY while depreciation decreased by 1% during the same period. Other income was higher by 23% YoY at ₹120 cr during 9M FY25. Other income included one-time gain of ~₹8 cr in Q2 FY25 owing to gain on closures of the Pune & Indore facilities. The forex gain during 9M FY25 was ~₹24 cr v/s ₹10 cr in 9M FY24.

#EBITDA #MARGIN

EBITDA margin in FY24 stood at 17.1% as compared to 18.2% in FY23. One-time costs due to the transitioning of ramp up of multiple large deals, higher onsite mix, higher travel costs, wage hikes all led to impact on the margins. In 9M FY25, EBITDA margin stood at 16.9%, flat YoY. One-time visa costs, higher SG&A (selling, general & administrative costs), wage hikes, ESOP costs, lower earn-out reversals, had negative impact on margins. These headwinds were offset by right shoring, pricing, increased utilization, operational efficiencies, and forex.

#PAT #MARGIN

The company recorded a PAT margin of 11.1% in FY24 as compared to 11% in FY23. The margins were slightly up due to lower finance costs and higher other income. PAT margin stood at 11.5%, up by 80 bps YoY. The company was able to modestly sustain margins backed by revenue growth, higher other income along with lower depreciation costs

#ROCE

ROCE for FY24 was 31.26%. PBIT during the year stood at ₹1,494 cr, while capital employed stood at ₹5,054 cr. It increased majorly due to higher current assets.

#ROE

In FY24, the ratio stood at 25.86%. Net profit increased to ₹1,093.5 cr, while the net worth stood at ₹4,957.7 cr. Net worth increased majorly due to higher profits.

#Company #potential

• According to the Future of technology Services– Winning in this Decade, published by NASSCOM, Indian technologies services industry is forecasted to grow 10%-12% to reach $300-$350 bn revenue and share of digital in Indian technology services revenue is likely to be 55%-60% by 2025 with an annual growth of 25%-30%. • The average tech spending of global enterprises stood at 3% of their revenue which is expected to move to 5% of revenue by 2030. By FY26, ~51% of IT spending is expected to shift from traditional solutions to public cloud as compared to 41% in FY23. • India is the topmost off-shoring destination for IT companies across the world. Having proven its capabilities in delivering both onshore and off-shore services to global clients, emerging technologies now offer an entire new gamut of opportunities for top IT firms in India. grow exponentially in the near future. • The country's cost competitiveness in providing IT services, which is approximately 3-4 times more cost-effective than the US, continues to be its unique selling proposition in the global sourcing market. • Companies are actively exploring opportunities for digitization, leading to increased demand for consulting services. Digital technologies and next-generation technologies such as 5G, AI/ Intelligent Enterprise, robotics and blockchain, are anticipated to • Cloud technology is a priority for majority of the organizations, while cyber-security concerns are at the top of mind of CEOs. AI, automation, data analytics, IoT and robotics will be the key drivers of the future tech stack.

#COMPANY #OUTLOOK

• They aim to deliver a revenue of $2 billion by FY27 and $5 billion by FY31. Strategic levers around FY31 plans would be shared in the subsequent quarters. The company reiterated to raise their EBIT margins by ~200-300 bps by FY27 as the company scales up. Improving operational parameters like efficient utilization, better offshore & onshore mix and pricing would aid in boosting margins. • In terms of segments, moving ahead, they expect majority growth from the healthcare space followed by BFSI and then Hi-Tech. • The comfortable utilization rate ranges for the company would be ~83%-85%, going ahead. • The company is confident of its growth on account of a healthy deal pipeline and no signs of weakness is anticipated. • The company would focus on enhanced service offerings to drive revenue growth going ahead and cost optimization levers around employee costs & efficiency to drive margin expansion. This would lead to a healthy growth in the coming quarters. • The medium-term margin levers would be efficient utilization rate, right shoring of employees, pace of higher investments normalizing which would lead to lower SG&A costs, sustained growth momentum, right pricing as well as differentiated offerings. Additionally, its platforms (SASVA & iAura) have higher margins and the uptick in those deals would aid margin expansion. • The revenue target for FY31 would be driven by scaling up of the 3 core verticals, doubling down on the Top 100 customers that contribute ~80% to the company’s revenue, expanding alternate channels like private equity & sourcing advisors and enhancing focus on global capability centres through infusion of digital capabilities and AI.

Persistent Systems 4200-4890
Expected level 6000
Support 4000

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Trident company details report

Established in 1990, formerly known as Abhishek Industries Limited, the name was changed to Trident Limited in 2011 (a flagship group of Trident group). The company has a presence in over 150 countries around the world and has two subsidiaries. In 2016, they ventured into the bed linen business by launching a factory in Budni, Madhya Pradesh. Currently, the company has three manufacturing units: two in Barnala (Punjab) and one in Budni (Madhya Pradesh). The product portfolio includes- Yarn, Home textiles (Bath & Bed Linen) and paper & chemicals. They cater to all the segments of the market- brands, department stores, home specialty chains, mass merchants and institutional customers and perform under three verticals: loyalty business, supermarket/hypermarket business and hospitality business. Their major marquee customers includes Walmart, D-mart, Ikea, Myntra, Amazon and Flipkart. The company established a foothold in the domestic and international markets through multi-brand shops and the ‘shop-in-shop’ concept.

#SALES #GROWTH

In FY24, sales stood at ₹6,809 cr, a growth of ~8% YoY, primarily owing to increase in the demand across segments. On the revenue front, Yarn and hometextile witnessed a rise, contributing ~83% of the total revenue, driven by higher capacity utilization while Paper & Chemicals witnessed a decline in the same. However, the year witnessed increased exports YoY (61% in FY24), that have helped the segment gain traction. In 9M FY25, sales declined by ~0.1% YoY to ₹5,123 cr. On the revenue front, Yarn and Bed-linen grew by ~15% and ~3% YoY to ₹2,704 cr and ₹1,023 cr, respectively. While the Bath-linen and Paper & Chemical segment observed a decline of ~7% and ~15% to ₹1,877 cr and ₹740 cr, respectively. Exports for 9M FY25 was ~₹3,088 cr v/s ~₹3,207 cr, showcasing a decline of ~4% YoY.