Industry Profile: India is the world’s largest sourcing destination, with the largest qualified talent pool of technical graduates in the world; according to the National Association of Software and Service Companies (Nasscom), the Indian IT industry’s revenue is estimated to reach US$ 194 billion in FY21, an increase of 2.3% YoY. The sector is the largest employer within the private sector. This push towards cloud services has boosted hyper-scale data center investments, with global investments estimated to exceed ~US$ 200 billion annually by 2025. As a result, India is expected to gain a meaningful share in the worldwide market, with the country’s investment expected to hit ~US$ 5 billion annually by 2025. The IT industry accounted for 8% of India’s GDP in 2020. Exports from the Indian IT industry are expected to increase by 1.9% to reach US$ 150 billion in FY21. In 2020, the IT industry recorded 138,000 new hires.

According to STPI (Software Technology Park of India), the software exports by its registered units increased by 7% YoY to reach Rs. 5 lakh crore (US$ 67.40 billion) in FY21 from Rs. 4.66 lakh crore (US$ 62.82 billion) in FY20, driven by rapid digitization and the IT industry’s timely transition to remote working environments that helped keep up the industry’s growth amid the coronavirus pandemic.

The IT & BPM industry’s revenue is estimated at ~US$ 194 billion in FY21, an increase of 2.3% YoY. The domestic income of the IT industry is estimated at US$ 45 billion, and export revenue is estimated at US$ 150 billion in FY21. According to Gartner estimates, IT spending in India will reach US$ 93 billion in 2021 (7.3% YoY growth) and further increase to US$ 98.5 billion in 2022.

Company Profile: Persistent Systems is a global solutions company delivering digital business acceleration, enterprise modernization, and digital product engineering. The company is digital-oriented and has clients across BFSI, Healthcare, Industrial, and Telecom. It provides services for Retail & Wholesale Banking, Wealth & Investments, Insurance, Consumer Lending, Capital Markets, Cards & Payments, Trade Finance, Forex Settlement, Medical devices, diagnostics, medical instruments, etc.

SahreHolding Pattern: BSE Data

Financials and ratios [table id=227 /]

Future Prospects: This one company is worth small and midcap. Financials and ratios show their strength. Growth can be a great position on a portfolio.