InCred Equities - Persistent Systems Ltd

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue (Rsm)	98,216	118,840	142,861	170,875
Operating EBITDA (Rsm)	17,243	20,428	25,858	32,125
Net Profit (Rsm)	10,935	13,850	17,422	21,671
Core EPS (Rs)	74.5	89.7	112.5	140.0
Core EPS Growth	23.6%	20.5%	25.4%	24.4%
FD Core P/E (x)	74.59	59.26	47.25	37.98
DPS (Rs)	26.0	32.0	43.9	56.0
Dividend Yield	0.49%	0.60%	0.83%	1.05%
EV/EBITDA (x)	46.55	39.26	30.80	24.47
P/FCFE (x)	104.65	83.28	60.22	46.28
Net Gearing	(25.9%)	(32.0%)	(38.6%)	(45.1%)
P/BV (x)	16.51	14.08	11.91	10.03
ROE	25.6%	25.6%	27.3%	28.7%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Total Net Revenues	98,216	118,840	142,861	170,875
Gross Profit	32,985	39,601	48,287	58,439
Operating EBITDA	17,243	20,428	25,858	32,125
Depreciation And Amortisation	(3,094)	(3,064)	(3,714)	(4,443)
Operating EBIT	14,149	17,364	22,143	27,682
Financial Income/(Expense)	813	982	1,086	1,213
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)
Profit Before Tax (pre-EI)	14,962	18,345	23,229	28,895
Exceptional Items
Pre-tax Profit	14,962	18,345	23,229	28,895
Taxation	(3,541)	(4,495)	(5,807)	(7,224)
Exceptional Income - post-tax	(486)
Profit After Tax	10,935	13,850	17,422	21,671
Minority Interests
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	10,935	13,850	17,422	21,671
Recurring Net Profit	11,421	13,850	17,422	21,671
Fully Diluted Recurring Net Profit	11,421	13,850	17,422	21,671

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
EBITDA	17,243	20,428	25,858	32,125
Cash Flow from Invt. & Assoc.
Change In Working Capital	(2,052)	(3,276)	(3,580)	(4,314)
(Incr)/Decr in Total Provisions	(1,145)
Other Non-Cash (Income)/Expense
Other Operating Cashflow
Net Interest (Paid)/Received
Tax Paid	(3,414)	(4,495)	(5,807)	(7,224)
Cashflow From Operations	10,633	12,656	16,470	20,587
Capex	(2,839)	(2,800)	(2,800)	(2,800)
Disposals Of FAs/subsidiaries	49
Acq. Of Subsidiaries/investments	(2,074)
Other Investing Cashflow	169	982	1,086	1,213
Cash Flow From Investing	(4,695)	(1,818)	(1,714)	(1,587)
Debt Raised/(repaid)
Proceeds From Issue Of Shares
Shares Repurchased
Dividends Paid	(4,084)	(4,954)	(6,795)	(8,669)
Preferred Dividends
Other Financing Cashflow	(1,853)
Cash Flow From Financing	(5,937)	(4,954)	(6,795)	(8,669)
Total Cash Generated	1	5,884	7,961	10,331
Free Cashflow To Equity	7,794	9,856	13,670	17,787
Free Cashflow To Firm	5,938	10,838	14,756	19,000

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Total Cash And Equivalents	12,955	18,839	26,801	37,132
Total Debtors	23,282	27,927	33,429	39,985
Inventories
Total Other Current Assets	4,994	4,994	4,994	4,994
Total Current Assets	41,232	51,761	65,224	82,111
Fixed Assets	7,062	6,799	5,884	4,241
Total Investments	5,539	5,539	5,539	5,539
Intangible Assets	15,488	15,488	15,488	15,488
Total Other Non-Current Assets	4,415	4,415	4,415	4,415
Total Non-current Assets	32,504	32,240	31,326	29,683
Short-term Debt
Current Portion of Long-Term Debt
Total Creditors	8,139	9,507	11,429	13,670
Other Current Liabilities	13,703	13,703	13,703	13,703
Total Current Liabilities	21,842	23,210	25,132	27,373
Total Long-term Debt	99	99	99	99
Hybrid Debt - Debt Component
Total Other Non-Current Liabilities	1,671	1,671	1,671	1,671
Total Non-current Liabilities	1,770	1,770	1,770	1,770
Total Provisions	547	547	547	547
Total Liabilities	24,159	25,528	27,449	29,691
Shareholders Equity	49,577	58,473	69,101	82,103
Minority Interests
Total Equity	49,577	58,473	69,101	82,103

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue Growth	17.6%	21.0%	20.2%	19.6%
Operating EBITDA Growth	13.5%	18.5%	26.6%	24.2%
Operating EBITDA Margin	17.6%	17.2%	18.1%	18.8%
Net Cash Per Share (Rs)	83.54	121.06	172.49	239.22
BVPS (Rs)	322.14	377.73	446.38	530.37
Gross Interest Cover
Effective Tax Rate	23.7%	24.5%	25.0%	25.0%
Net Dividend Payout Ratio	26.7%	27.0%	29.2%	30.0%
Accounts Receivables Days	81.12	78.64	78.38	78.41
Inventory Days
Accounts Payables Days	38.69	40.64	40.40	40.74
ROIC (%)	34.6%	39.2%	45.6%	53.1%
ROCE (%)	23.6%	24.2%	26.0%	27.4%
Return On Average Assets	20.5%	22.3%	24.8%	26.9%

(91) 22 4161 1543 abhishek.shindadkr@incredresearch.com

(91) 22 4161 1544 vikas.swami@incredresearch.com

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Market Data

Source: Bloomberg