Coforge, Persistent Systems continue growth on back of stable leadership

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Subscribe to enjoy similar stories. Information technology companies Persistent Systems Ltd and Coforge Ltd, the latest entrants to the $1 billion club, reported revenue growth for the three months ended September on the back of business from clients in the Americas, which accounted for most of their incremental income. While both companies deploy different strategies as they chase the next $1 billion, a commonality of their growth so far has been stability at the top.

Persistent Systems, based in Pune, reported a 5.27% sequential and an 18.4% yearly jump in revenue to $345.5 million, its second straight quarter of QoQ revenue growth exceeding 5% and 18 consecutive quarters of overall revenue growth. Most of this growth came from clients in North America, which contributed $16 million, or about 92%, of the company’s incremental revenue of $17.3 million. The company’s net profit rose 5.4% sequentially to $38.7 million.

At Noida-based Coforge, revenue and growth were higher than that of Persistent. The company’s revenue grew 26.8% sequentially and 32.8% on a yearly basis to $369.4 million. The Americas made up $58.3 million, or about 75% of the company’s $78.4 million sequential incremental growth.

Coforge’s revenue, discounting acquisitions, stood at $309.8 million, which is a 6.3% jump from the preceding quarter. Coforge said in May it would acquire Hyderabad-based Cigniti Technologies, an AI & IP-led digital assurance and engineering services company, shelling out $220 million for a 54% stake in the company by September. The acquisition, its biggest, would give a shot in the arm to Coforge’s businesses by establishing three new verticals - retail, hi-tech, and healthcare.