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• Annual Report 2018-19
Shaping the future of software driven business
Profit Before Interest, Tax, Depreciation and Amortization
During the year, the Company reported Profit before interest, tax, depreciation and amortization of
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6,438.95 Million
representing an increase of 9.54 % over Profit before interest, tax, depreciation and amortization and exceptional item of
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5,878.27 Million during the previous year. The margin of Profit before interest, tax, depreciation and amortization slightly
decreased to 19.13% during the year from 19.38% in the previous year.
Depreciation and Amortization
The depreciation and amortization for the year amounted to
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1,572.51 Million as against
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1,584.87 Million in the previous year
showing a marginal decrease of 0.78%.
Depreciation and amortization as a percentage of revenue was 4.67% for the year against 5.22% for the previous year.
Please refer Note 6.4 of the consolidated financials for details.
Tax expenses
Tax expense consists of current tax and deferred tax.
The Group’s two major tax jurisdictions are India and the United States, though the Group also files tax returns in other
overseas jurisdictions.
The tax expense for the year amounted to
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1,432.01 Million (including tax charge in respect of earlier years of
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88.81 Million)
against
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1,132.80 Million (net of tax credit in respect of earlier years of
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71.19 Million) in the previous year. The deferred tax
credit for the year was
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85.41 Million against deferred tax credit of
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71.07 Million in the previous year.
The total tax expense for the year amounted to
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1,346.60 Million against
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1,061.73 Million for the previous year. The Effective
Tax Rate (ETR) for the year amounted to 27.69% as compared to 24.73% in the previous year.
Net Profit after Tax
The Net Profit for the year amounted to
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3,516.79 Million against
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3,230.88 Million for the previous year, recording an increase
of 8.85%. The Net Profit margin for the year was 10.45% as compared to 10.65% in the previous year.
Return on net-worth for financial year 2018-19 is 15.00% as compared to 15.19% for the previous year.
Dividend
The total dividend per share for the year was
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11 per share which includes an interim dividend of
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8 declared in the January
board meeting and paid in February 2019, and
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3 per share proposed as final dividend for the year subject to shareholders’
approval. For the previous year, the total dividend was
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10 per share.
The total appropriation towards dividend for the year was
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880 Million as against
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800 Million for the previous year. The total
Dividend Distribution Tax for the year on the above dividend was
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137.41 Million against
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150.23 Million for the previous year.
The Company received dividend of INR 211.49 Million from its three subsidiaries i.e. Persistent Systems Pte. Limited, Singapore
and Persistent Systems France SAS, Persistent Systems Malaysia Sdn. Bhd. The Dividend Distribution Tax was paid on the net
dividend paid after deducting the dividend income from subsidiaries. Hence there was reduction in the dividend distribution tax
inspite of higher dividend paid during the year. The dividend payout ratio (including proposed final dividend) for the year was
29.45% as compared to 28.52% for the previous year.
Earnings Per Share (EPS)
Basic and Diluted earnings per share went up to
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43.99 per share, compared to
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40.39 per share in the previous year,
recording an increase of 8.91%.