We had recommended Persistent Systems to our readers in Volume No 34, Issue No 45 (dated Aug 27, 2018), when the scrip was trading at Rs 873. Our recommendation was based on factors such as robust financials. In Q2FY19, the company’s revenue was up by 9.8 percent YoY to Rs 835.6 crore. The revenue growth was missed as per market estimates due to drag in digital services and IP-led business. Its EBITDA for the quarter grew by 24 percent YoY to Rs 143.6 crore and EBITDA margin stood at 17.2 percent. Higher attrition continued due to exit of sales employees at the start of the quarter. PAT was up by 6.7 percent YoY to Rs 88.1 crore. Healthy deals in the pipeline would trigger company’s topline and demand is expected from Q3FY19 onwards. Thus, we urge investors to HOLD the scrip.