Mumbai, Apr 25 (PTI) Mid-tier IT company Persistent Systems on Tuesday reported a 25.1 per cent growth in its March 2023 quarter net profit at Rs 251.51 crore.

The Pune-based company posted a post-tax net of Rs 921 crore for 2022-23, which was a 33.4 per cent growth over the previous fiscal year.

Also Read | Air India Salary Revision Row: Protesting Pilots Seek Ratan Tata's Intervention in Revamped Pay Structure Issue.

For the reporting quarter, its revenue grew 26.3 per cent to Rs 2,254 crore, but when compared to the preceding December quarter -- the growth was much slower at 3.9 per cent.

Its chief financial officer Sunil Sapre said the company is also impacted by the macro trends and called the demand environment "tough".

Also Read | PF Withdrawal: Know Step-by-Step Guide To Withdraw EPFO Money Using Umang App.

He said in the first half of the ongoing FY24 will be highly challenging, and conversations' conversion into deal wins to be stretched as clients become circumspect.

The company is still hopeful of doubling its revenue to over USD 2 billion in the next four years, he noted.

The company has certain factors that can benefit it like lower reliance on the big banking clients by having a granular banking, financial services and insurance portfolio, he said, adding that there may also be a bounce back later in the year as the rate tightening by major central banks stops.

It has been able to maintain the operating profit margin at 15.4 per cent despite the present situation, and will be working on increasing the utilisation and benefitting from the absence of acquisition amortisation costs, which will benefit it by 0.50 per cent, Sapre said.

From an employee growth perspective, it added about 300 people on a net basis to take the overall staff count to over 22,800. Sapre did not offer an outlook on hiring in the new fiscal.

The company scrip closed 0.70 per cent up at Rs 4,472.10 apiece on the BSE on Tuesday against a gain of 0.12 per cent on the benchmark.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)