Persistent Systems Limited — Interim / Quarterly Report 2020

Jan 30, 2020

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PERSISTENT
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NSE & BSE / 2019-20 / 107

January 30, 2020

The Manager, Corporate Services, National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai 400051

The Manager, Corporate Services, BSE Limited 14[th ] Floor, P J Towers, Dalal Street, Mumbai 400001

Ref: Symbol: PERSISTENT

Ref: Scrip Code: 533179

Dear Sir/ Madam,

Sub.: Submission of the Newspaper Advertisement under Regulations 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations. 2015

Pursuant to the Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby submit the newspaper advertisement of the Unaudited Financial Results for the quarter and period ended December 31, 2019. The same will be published on Friday, January 31, 2020 in the following newspapers:

1. Financial Express (All Editions)

2. Loksatta (Pune Edition)

The Unaudited Results for the said period were approved by the Board of Directors of the Company at its meeting held on January 29, 2020 and concluded on January 30, 2020.

We request you to take the same on your records.

Thanking you,

Yours sincerely, For Persistent Systems Limited A Company Secretary ICSI Membership Number: ACS 20507

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Encl: As above

Persistent Systems Limited, Bhageerath, 402, Senapati Bapat Road, Pune 411016 \ Tel : +91 (20) 670 30000 Persistent Systems Inc., 2055, Laurelwood Rd, Suite 210, Santa Clara, CA 95054, USA I Tel : +1 (408) 216 7010 CIN - L72300PN1990PLC056696 \ Fax - +91 (20) 6703 0009 \ e-mail - info@persistent.com I Website - www.persistent.com

Persistent cP

Persistent Systems Limited

Registered Office : Bhageerath, 402, Senapati Bapat Road, Pune 411016, India

Ph. No. +91(20)67030000; Fax +91(20)67030009; Email : info@persistent.com, 'www.persistent.com'. ON L72300PN1990PLC056696

Unaudited consolidated financial results of Persistent Systems Limited for the quarter and nine months ended December 31, 2019

Segment wise Revenue, Results and Capital Employed

The Group reorganised itself into three business units from April 1, 2018, which form the operating segments for segment reporting. The operating segments are:

Sr. No.		Particulars		Quarter ended Dec 31,2019 Se�30,2019 (Unaudited) Audited)	Quarter ended Dec 31,2019 Se�30,2019 (Unaudited) Audited)	Dec 31,2018 (Audited)	Nine months ended Dec 31,2019 Dec 31,2018 (Unaudited) (Audited)	Nine months ended Dec 31,2019 Dec 31,2018 (Unaudited) (Audited)	�in Million Year ended Marh 31,2019 (Auditd)	�in Million Year ended Marh 31,2019 (Auditd)	e roup reorganse se no ree usness uns rom pr , , wc orm e operang segmens or segment reporing. The operating segments are: a. Technology Services b. Alliance
1		Income Revenue from opertions (net)		9,227.29	8,846.00	8,642.49	26,394.43	25,340.87	33,659.41		c. Accelerite (Products) Accordingly, the corresponding figures fr the earlier reporting periods are restated in line with the above
2		Other income		347.75	382.46	229.93	1,030.57	592.59	876.55		reorganization. fin Million
3 4		Total income Expenses - Employee benefits expense - Cost of professionals	(1+2)	9,575.04 5,594.47 998.71	9,228.46 5,369.71 897.18	8,872.42 4,909.33 905.89	27,425.00 15,880.43 2,755.71	25,933.46 14,390.06 2,627.62	14,535.96 19,249.53 3,490.45		Sr Quarer ended Nine months ended Year ended No. Pariculars Dec 31,2019 Se�30,2019 Dec 31,2018 Dec 31,2019Dec 31,2018 Marh 31,2019 (Unauditd) Auditd) (Audited) (Unauditd) (Audit) (Audited) 1 Segment rvenue - Technology Serices 6,434.28 5,979.85 5,597.18 18,118.64 16,276.88 22,018.03
		- Finance costs		14.76	18.38	0.67	51.64	2.02	3.05		-Allianoe 2,465.72 2,492.86 2,541.10 7,271.23 7,698.73 9,759.92
5 6 7		- Depreciation and amortization expense - Other expenses Total Expenses Profit befre exceptional items and tax Exceptional items Profit befre tax	(3-4) (5-6)	428.30 1,399.05 8,435.29 1,139.75 - 1,139.75	424.90 1,362.66 8,072.83 1,155.63 - 1,155.63	396.32 1,365.00 7,577.21 1,295.21 - 1,295.21	1,239.37 4,104.86 24,032.01 3,392.99 - 3,392.99	1,195.71 3,967.80 22,183.21 3,750.25 - 3,750.25	1,572.51 5,357.03 29,672.57 4,863.39 - 4,863.39		-Acoelerite (Product) 327.29 373.29 504.21 1,004.56 1,365.26 1,881.46 Tol 9,227.29 8,846.00 8,642.49 26,394.43 25,340.87 33,659.41 2 Less: Inter segment revenue -- -- -- -- -- -- 3 Net sales/income fm operations 9,227.29 8,846.00 8,642.49 26,394.43 25,340.87 33,659.41 4 Segment profit (loss) befre tax, interest and depreciation and amortization - Technology Serices 2,417.09 2,285.07 2,134.66 6,770.26 6,167.91 8,507.67 -Allianoe 696.79 849.59 1,061.25 2,294.99 2,748.13 3,298.01
8		Tax expense - Current tax		348.37	289.72	266.03	988.64	1,044.45	1,343.20		- Acoelerite (Product) 150.96 186.17 283.92 445.05 687.99 992.14 Tol 3,264.84 3,320.83 3,479.83 9,510.30 9,604.03 12,797.82
		-Tax charge/( credit) in respect of earlier years -Deferred tax charge / ( credit)		47.34 (135.22)	(1.37) 6.56	73.39 38.62	45.97 (206.30)	76.29 (42.55)	88.81 (85.41)		5 Less: - Finance cos 14.76 18.38 0.67 51.64 2.02 3.05 - Other un-allocable expenses 2,458.08 2,529.28 2,413.88 7,096.24 6,44.35 8,807.93 6 Un-allocable income 347.75 382.46 229.93 1,030.57 592.59 876.55
9 10		Total tax expense Profit fr the period / year Other comprehensive income	(7-8)	260.49 879.26	294.91 860.72	378.04 917.17	828.31 2,564.68	1,078.19 2,672.06	1,346.60 3,516.79		7 Prot before tax 1,139.75 1,155.63 1,295.21 3,392.99 3,750.25 4,863.39 8 Segment assets [Trade receivables (net)] fin Million As on
A. Items that will not be reclassified to profit and loss											Dec 31, 2019 Dec 31, 2018 March 31, 2019 (Unauditd) (Audited) (Auditd)
		-Remeasurements of the defined									- Technology Services 3,606.98 3,194.52 3,547.07
		benefit liabilities / assets (net of tax)		(0.77)	(10.03)	(33.50)	(37.17)	(59.34)	(47.15)		-Alliance 1,509.44 1,035.20 1,021.77 -Accelerite (Products) 395.52 496.94 354.17
				(0.77)	(10.03)	(33.50)	(37.17)	(59.34)	(47.15)		Total allocable segment assets 5,511.94 4,726.66 4,923.01
		B. Items that may be reclassified to									Unallocable assets 23,706.09 24,458.22 23,632.98
		profit and loss - Efective portion of cash flow hedge									Total assets 29,218.03 29,184.88 28,555.99 Note fr segment wise infrmation: Operating segments are components of an enterprise fr which discrete financial infrmation is available that is
		(net of tax) -Exchange differences in translating the financial statements of freign		(31.11)	(124.71)	351.15	(179.01)	52.86	168.43		evaluated regularly by the chief operating decision makers, in deciding how to allocate resources and assessing perormance. The Group's chief operating decision makers are the Chief Executive Oficer and the Chairman and Managing Director. Segment wise capital employed
		operations		(129.22) (160.33)	83.04 (41.67)	(165.47) 185.68	(46.81) (225.82)	172.24 225.10	113.82 282.25		Segregation of assets (other than trade receivables), liabilities, depreciation and amortization and other non-cash expenses into various reportable segments have not been presented as the assets and liabilities are used interchangeably among segments and the Group is of the view that it is not practical to reasonably allocate the other assets, liabilities and
		Total other comprehensive income	(A+B)	(161.10)	(51.70)	152.18	(262.99)	165.76	235.10		Notes:
11		for the period / year Total comprehensive income fr the period / year (Comprising Proft / (Loss) and Other Comprehensive	(9+10)	718.16	809.02	1,069.35	2,301.69	2,837.82	3,751.89		1 The unaudited condensed consolidated financial statements for the quarter and nine months ended December 31, 2019, have been taken on record by the Board of Directors at its meeting concluded on January 30, 2020, as recommended by the Audit Committee at its meeting held on January 29, 2020. The Audit Committee has reviewed the above results and the Board of Directors has approved the above results and its release at their respective meetings held on January 29, 2020 and January 30, 2020. The Statutory Auditors of the Company have carried out a 'Limited Review' of the afresaid results.
		Income for the period / year)									2 Effective April 1, 2019, the Group adopted Ind AS 116 "Leases", applied to all applicable lease contracts existing on April
12 13		Paid-up equity share capital (Face value of share , 10 each) Other equity excluding revaluation		764.25	764.25	800.00	764.25	800.00	791.19 22,655.61		1, 2019 using the modified retrospective method and has taken the cumulative adjustment to retained earnings, on the date of initial application. Accordingly, comparatives fr the period / year have not been retrospectively adjusted. On transition, the adoption of the new standard resulted in recognition of Right-of-Use assets (ROU) of, 722.51 million and a lease liability of, 888.90 million. The cumulative efect of applying the standard resulted in, 123.60 million being debited to retained earnings, net of taxes. The effect of this adoption is insignificant on the profit fr the period and
		reserves									earnings per share.
14 15		Earnings per equity share in , (Not annualised) - Basic - Diluted Dividend per share (in ') (Nominal value		11.50 11.50	11.26 11.26	11.46 11.46	33.41 33.41	33.40 33.40	43.99 43.99		3 As reported in the previous quarters, Persistent Systems Limited ("the Parent Company") has deposits of, 430.00 million with the financial institutions viz. Infrastructure Leasing & Financial Serices Ltd. {IL&FS) and IL&FS Financial Services Ltd. (referred to as "IL&FS Group'1 as on the balance sheet date. The Group has not accrued any interest on these deposits since April 1, 2018. In view of the uncerainty prevailing with respect to recovery of outstanding balances from IL&FS Group, Management of the Parent Company has provided an additional amount of, 200.00 million during nine months ended December 31, 2019, thereby taking the total provision to, 382.50 million fr impairment in value of deposits as of December 31, 2019. The provision currently reflects the exposure that may arise given the uncerainty. With the resolution plan in progress, the Management of the Parent Company is hopeful of recovery though with a time
		per share, 10)									lag. The Parent Company continues to monitor developments in the matter and is committed to take steps including
		-Interim dividend		9.00	-	8.00	9.00	8.00	8.00		legal action that may be necessary to ensure full recovery of the said deposits.
		-Final dividend Total dividend		- 9.00	- ~~-~~	- 8.00	- 9.00	- 8.00	3.00 11.00		4 The Board of Directors of Persistent Systems Limited, at its meeting commenced on January 29, 2020 and concluded on January 30, 2020 declared an interim dividend on 9 per share on the face value of, 10 each fr the Financial Year 2019- 20. The Record Date fr the payment of the same will be Friday, February 7, 2020. The payment will be made by Friday,
											February 14, 2020.
Sr. No.		Unaudited unconsolidated fnancial information Pariculars Quarter ended Nine months ended Dec 31, 2019Sept 30,2019 Dec 31, 2018 Dec 31, 2019Dec 31, 2018 (Unaudit) (Auditd) (Audited) (Unauditd) (Audit)							fin Million Year ended Marh 31,2019 (Auditd)		5 Aepona Holdings Limited, Ireland, the wholly owned subsidiary of Persistent Systems Inc., USA and step down subsidiary of the Company, dissolved w.e.f. October 24, 2019. 6 The figures fr the corresponding previous period have been regrouped / reclassified wherever necessary, to make them comparable. By order of Board of Directors of Persistent Systems Limited
1		Revenue from operations (net)		5,448.79	5,017.09	4,879.75	15,419.83	14,435.96	19,598.67		Pune Dr. Anand Deshpande Kiran Umrootkar
2 3		Profit befre tax Profit afer tax		1,206.76 899.56	1,343.36 1,068.46	910.44 610.01	3,664.85 2,802.41	3,422.07 2,430.08	4,383.76 3,150.08		January 30, 2020 Chairman and Managing Director Director "For risks and uncertainties relating to forward-looking statements, please visit our website :- www.persistent.com"