Dr. Anand Deshpande, Chairman and Managing Director of the company addressed the call.

Highlights of the call:

Sequentially Persistent Systems posted stagnant sales at Rs 835.56 crore for the quarter ended September 2018.

$ Revenues stood at $ 118.23 Million, decline of 4.3% QoQ and increase of 0.1% YoY.

OPM rose 40 basis points to 17.2% which saw OP rise 3% to Rs 143.62 crore.

PBT grew 7% to Rs 126.88 crore. PAT grew 1% to Rs 88.14 crore.

On yoy basis, sales grew 10%. OPM improved 200 basis points which saw OP grow 24%. PBT grew 14% and net profit went up 7%.

For the six months sales grew 12% to Rs 1669.84 crore. OPM rose 220 basis points to 17.0% which saw OP rise 29% to Rs 283.68 crore. PBT grew 15% to Rs 245.50 crore. PAT grew 11% to Rs 175.49 crore.

Six months $ Revenue stood at US$ 241.83 Million, up 4.7%.

Digital numbers are lower than expected

The slack quarterly performance was due to multiple execution-led concerns. This included reducing sales, lack of right resources, project closure, no visa renewals in some cases, etc. It was nothing to do with demand.

It sees good growth opportunities across all segments of business.

Multiple new projects started this quarter will deliver long-term revenue growth.

The shortfall in digital revenue can be attributed to short closure of one projects and a shift in the business mix as some projects moved offshore.

It hopes to make a strong comeback on the performance side as it has resolved the challenges. It has made the required hiring and is confident of better deal pipeline conversions given its differentiated strength in specific domains, powered by robust partnerships in the Digital segment.

The company sees significant demand in the market.

Q3 will be string driven by due to the expected better performance in the Digital segment. Also for its Alliance business segment Q3 is a seasonally strong quarter.

Supply-side challenges leading to poor billings also impacted performance.

It will continue to invest in new technologies and in enhancing domain and consulting skills in its customers' geography as can be seen from the acquisition of Herald Health and the setting up of Partners Healthcare Pivot Labs.

It is confident on its domain-centric approach in the Digital segment.

It has Corporate Deposits with IL&FS of around Rs 43 crore. The company has received interest payments on it so far. The deposits will be maturing between January 2019 and June 2019.