Persistent Systems declares dividend of Rs 22 per share, stock rises

Pune-based IT services company Persistent Systems recommended a final dividend of Rs 12 per equity share and a special dividend of Rs 10 per equity share of Rs 10 each for the 2022-23 financial year. The special dividend is being recommended for achieving $1 billion in annual revenue and will be paid along with the final dividend, the company said in a filing.

"This aggregate dividend of Rs 22 per equity share is subject to the approval of members at the ensuing Annual General Meeting which will be held on or before September 30, 2023," the statement read.

The book closure for the purpose of payment of said dividend for the Financial Year 2022-23 will be determined later, it said.

Persistent Systems has declared 28 dividends since May 3, 2010. In the past 12 months, Persistent Systems Ltd has declared an equity dividend amounting to Rs 39 per share, according to data from Trendlyne.

At the current share price of Rs 4,472.20, this results in a dividend yield of 0.87 percent.

Persistent Systems saw its revenue grow 3.92 percent over the previous quarter to Rs 2,254.47 crore in the three months ended March 31, as per an exchange filing. That compares with the Rs 2,253.93-crore consensus estimate according to Bloomberg.

Net profit surged by 5.69 percent at Rs 251.5 crore while EBIT margin was at 15.37 percent as against 15.35 percent.

"FY23 was momentous for Persistent as we achieved several key milestones, including $1 billion in annual revenue and inclusion in three key indices of the NSE including the Nifty IT index," the company's chief executive officer Sandeep Kalra said.

"As we move to the next phase of growth, we will continue to strengthen our partner ecosystem, maintain operational rigour, and

deepen our capabilities to scale our digital engineering expertise and drive business value for our clients," Kalra added.

Shares of Persistent Systems Limited settled 0.46 percent higher at Rs 4,462.85 apiece on NSE in Tuesday's trade. The stock has rallied 2.28 percent in the last one week and 18.41 percent in the last six months.