Persistent Systems shares jump 5% on launching AI-powered contract management solution

Shares of Persistent Systems rose by over 5 percent to Rs 6,211 per share on January 15 after the company launched ContractAssIst, an AI-powered contract management solution developed in partnership with Microsoft.

ContractAssIst will leverage Microsoft's technology ecosystem to offer contract management features. Built on Azure AI, the solution ensures data handling, search capabilities, and compliance.

It integrates with Microsoft 365 Copilot and Microsoft Teams, providing real-time collaboration tools and AI-driven decision support. Advanced models like GPT-3.5 and GPT-4, through Azure OpenAI Service, improve contract analysis using natural language processing.

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Sandeep Kalra, CEO and Executive Director of Persistent, said, "At Persistent, our AI-driven, platform-based approach is key to addressing complex enterprise challenges with practical, scalable solutions. ContractAssIst, developed in collaboration with Microsoft, showcases how we use innovative technologies to transform traditionally manual tasks, such as contract management, with AI. This solution reflects our strong partnership with Microsoft and our shared vision of driving AI adoption to achieve measurable efficiencies and tangible results for our clients."

Recently, the company also introduced Pi-OmniKG, AI-driven knowledge graph solution created with Google Cloud technology. This solution is set to help healthcare and life sciences organisations accelerate biomedical research, streamline data mining, and deliver insights faster and more accurately.

Persistent Systems is set to release its third-quarter results on January 22, 2025. Analysts at HDFC Securities expect the company to lead sequential growth in the mid-tier IT sector for Q3. The brokerage forecasts a 22 percent year-on-year (YoY) increase in net sales, reaching Rs 3,044 crore in Q3FY25, with adjusted profit rising by 24 percent YoY to Rs 355 crore.

At the operating level, Persistent’s EBIT is expected to grow 22.6 percent YoY to Rs 445 crore, with the EBIT margin likely to expand by 9 basis points YoY to 14.6 percent in Q3FY25.

Over the past 3 months, shares of Persistent Systems have surged 8 percent, outperforming benchmark Nifty 50's 4 percent decline.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.