Difficult situations test the character of both individuals and companies. How we respond defines our identity and our future course.
Dr. Anand Deshpande
Founder, Chairman and Managing Director
Dear valued Shareowners,As I write this for our 30th Annual Report, for FY 2019-20, we are experiencing an unprecedented pandemic that has resulted in economically challenging times.I pray that you and your families are safe and in good health.Ensuring the safety and well-being of our employees and their families was our highest priority and I am glad to report that all are safe and doing well. We enabled work from home as soon as lockdown was announced and I commend our HR and IT teams in getting this executed quickly and ensuring all customer commitments were met without delay.We believe work-from-anywhere will become the new norm, creating new business models and opportunities.In this time of need, as a responsible corporate citizen, we must also contribute. I am proud that Persistent donated ₹25 Crores (US$3.3 million) to relief and research for COVID-19 globally. Many employees also made voluntary contributions to support their local communities.But crisis also provides new opportunities. With zero travel, we actively engaged with our customers and partners on video calls to explore how we could be meaningful partners. These relationships are the foundation of our business in the years to come.
We also achieved several significant milestones during the year. We crossed the 10,000 employee mark and exceeded half a billion dollars in revenues for the first time. We have a new leadership team in place with CEO Chris O’Connor and President Sandeep Kalra now leading the company. Last but not least, we celebrated 30 years of incorporation May 30.The revenues for the year were US$501.6 million, or ₹35,658 million — a 5.9% revenue growth year on year. The profit for the year was ₹3,402 million. We also completed a share buyback and paid shareholders a dividend of ₹12 per share.The technology roadmap for the future is robust, and the current crisis has only accentuated the need for businesses to deploy digital technologies urgently.We continue to build software products for those defining technology and partner with market leaders. Our digital mosaic approach helps enterprises manage the complexity of choice and integration to rapidly deploy digital solutions.The 30-year journey of the company has been exciting and rewarding, and I would like to thank all the stakeholders for their support over the years. I look forward to your continued support.
We exited FY20 as one company, with a clear strategic focus on the market, our leadership team strengthened, and the added expenses associated with transition behind us.
Executive Director and Chief Executive
It’s our privilege to present the progress of Persistent. At the end of year, we announced the achievement of US$500 million in revenue.FY20 was one of thoughtful transition. From the start we recognized that Persistent possessed an excellent technical foundation of varied ISV and enterprise clients, a focused set of industry leading partners and expertise in banking, financial services, healthcare, life sciences and industrial sectors. Our challenges were in our own structure and that we were unknowns of a sort in the market. We therefore focused on our team’s market leading capabilities, sales alignment and our core values by gathering Persistent together under one revitalized brand. We grew accounts, business units learned how to share clients and revenue accumulated — in particular, the Technology Services Unit prospered. Finally, we created a follow-on anthology to Anand’s thought leadership that strategically teaches clients how to embrace the hybrid cloud digital world. In March 2020, in a single week, the Persistent team went home. 10,600 of us left the office. We figured out how to segregate our family time and became a closer team. For 90 days all of Persistent’s global employees met in a virtual online coffee break where we supported one another, swapping thousands of pictures and stories. Persistent’s most valuable asset, our women and men around the world, and their families, were safe. In times of uncertainty, you gather those you trust and collaborate for the way forward. With our
clients and partners we embraced distance working and the latest collaboration platforms. We don’t expect to go back to “pre-COVID” but live in the new reality where the digital imperative has only accelerated and become a mandate for survival.Our transition efforts are serving Persistent well. Digital transformation expertise is now recognized as a must have requirement from ISVs and enterprises alike. Together with partners such as AWS, Salesforce, Microsoft, IBM and others we are coaching the market about the future of work. While clients face their own budget challenges, the impact of COVID-19 presents opportunities that leverage our technical and industry strengths. Amazingly, while we are physically distant, we are effectively closer to our partners and clients.Today, Persistent is a forward-looking global solutions provider delivering digital business acceleration and modernization for enterprises. Our new structure enables solution leadership with ISVs as well as enterprise clients. Persistent is focused on our clients’ unique digital mosaic, made up of best-in-class platforms, software and services strategically selected to create distinct value. We know the methodologies for success, best practices and partners required to build the optimal digital mosaic. The result is expanded client conversations and new opportunities.We are actively laying out our plans for the next phase of growth. $1 billion is on the horizon.