Re rise, acquisition crimp Persistent margin, restrict Q1 net

Mid-size software firm Persistent Systems today said currency volatility and higher investment led to a margin compression in the June quarter, leading to 2.5 per cent rise in net at Rs 75 crore.

The Pune-headquartered company has also announced acquisition of Parx for 8.5 million Swiss Franc (about Rs 57.67 crore) in an all-cash deal.

Total revenues grew 3.7 per cent to Rs 728 crore in the quarter from Rs 701.77 crore a year ago, but margins got squeezed leading to a slower profit growth.

Operating profit margins came down by 2 percentage points to 14.3 per cent and were impacted by several factors, including rupee appreciation (1.20 per cent), investments (0.90 per cent) and lower utilisation (0.40 per cent), its chairman Anand Deshpande told

(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)