Persistent Systems - In Right Space at Right Time :: Edelweiss, link

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We attended Persistent Systems' (Persistent) ‘Annual Investor Day’. The meet's key objective was to offer the investor community a peek into the company's acquisitions strategy, showcase business and vertical heads’ role and hold live demos of digital products and digital transformations. The company clearly highlighted the increasing importance of data with its humongous growth and how it can be used through analytics to make decision making quicker and more efficient. The company guided for 15% revenue growth in FY15, which implies USD315mn revenue; for Q3FY15, it expects to clock USD79-81mn revenues. It also maintained it was in the right business and investing in the right direction. We reaffirm our positive stance on Persistent due to its presence in relevant technologies and niche business model.

Building Digital enterprise business

While Persistent continues to work with its clients on outsourced product development, the company is also trying to establish itself as a key partner for digital modernisation. It perceives digital space as a separate IT project for enterprises, which would need a separate vendor versus the usual IT work due to different capabilities requirement. Persistent believes its product engineering and product development expertise will enable it to succeed in its Account Led strategy. We believe improving efficiency and user friendliness of devices along with voice recognition technologies have the potential to ramp up data growth exponentially in turn leading to tremendous opportunity for analytics businesses where Persistent is well placed.

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https://www.edelweiss.in/research/EdelFlash-Persistent-Systems--In-Right-Space-at-Right-Time/27871.htmlhttps://www.edelweiss.in/research/EdelFlash-Persistent-Systems--In-Right-Space-at-Right-Time/27871.html