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videos | IST

Persistent Systems targets 16-17% margin in FY22; says attrition rampant in sector

Persistent Systems is trying to keep pace with market trends and investing in building more talent, Sandeep Kalra, executive director & CEO, told CNBC-TV18.

Persistent Systems is trying to keep pace with market trends and investing in building more talent, Sandeep Kalra, executive director & CEO, told CNBC-TV18.
The company reported its earnings for the June-ended quarter. The company saw its highest quarterly growth of 9.2 percent on a quarter-on-quarter (QoQ) basis, and its margins also expanded for the sixth consecutive quarter.
“There is an existing pressure on wages, and attrition across the sector has gone up especially for the skills that we operate in. However, there are a few things that we did, we were the first one in our industry to come back with wage increases. So, we are trying to keep pace with what the market trends are and also investing in building more talent and trying to keep ahead of the curve,” Kalra said.
On margin expansion, he said, “We are comfortable in 16-17 percent EBITDA range and that’s the target range that we are operating in. We are comfortable where the margins are and we are not sacrificing anything, but our focus is to make sure that we are growing well, and our target operating model is 16-17 percent and we are comfortable with that.”
For the entire management interview, watch the video