AgenciesMumbai: Mid-size information technology company on Friday reported a 40 per cent jump in its June quarter net profit to Rs 211.6 crore. The Pune-headquartered company reported a 52.7 per cent rise in its revenue to Rs 1,878 core.
Its chief executive Sandeep Kalra said the company is not very worried about the macro situation, including threats of recession in its largest market - the US, which has witnessed massive rate hikes by the central bank because of record inflation.
The company, which reported a total contract value of USD 394 million during the reporter quarter, is observing cautiously the developments but is confident of business momentum going ahead.
He said even in a recessionary environment, the services offered by IT offshoring companies are relevant, which will lead to better business performance.
Its operating profit margin widened to 17.7 per cent compared to 17.2 per cent in the preceding March quarter and was benefitted majorly by the currency tailwinds.
A dip in intellectual property-related revenue and the hiring of over 3,000 people were the profit margin headwinds.
Its chief financial officer Sunil Sapre said it will face the pressure of up to 3 per cent on the margins in the second quarter as its average pay hikes of over 10 per cent for Indian staffers and 5 per cent for overseas ones take effect from July 1.
The company will rely on levers like increasing the utilisation and decreasing the on sub-contracted staff as its own staff can now travel to client locations, he said.
Kalra said another 1,350 freshers to whom the company has already made offers will be joining the company during the July-September period and will continue to hire on the back of demand for services.
It is looking to open development centres in smaller centres like Ahmedabad and Kochi in the near future, Kalra said.
The company scrip gained 1.88 per cent to close at Rs 3,631.30 apiece on the BSE on Friday against gains of 0.70 per cent on the benchmark.
Its chief executive Sandeep Kalra said the company is not very worried about the macro situation, including threats of recession in its largest market - the US, which has witnessed massive rate hikes by the central bank because of record inflation.
The company, which reported a total contract value of USD 394 million during the reporter quarter, is observing cautiously the developments but is confident of business momentum going ahead.
He said even in a recessionary environment, the services offered by IT offshoring companies are relevant, which will lead to better business performance.
Its operating profit margin widened to 17.7 per cent compared to 17.2 per cent in the preceding March quarter and was benefitted majorly by the currency tailwinds.
A dip in intellectual property-related revenue and the hiring of over 3,000 people were the profit margin headwinds.
Its chief financial officer Sunil Sapre said it will face the pressure of up to 3 per cent on the margins in the second quarter as its average pay hikes of over 10 per cent for Indian staffers and 5 per cent for overseas ones take effect from July 1.
The company will rely on levers like increasing the utilisation and decreasing the on sub-contracted staff as its own staff can now travel to client locations, he said.
Kalra said another 1,350 freshers to whom the company has already made offers will be joining the company during the July-September period and will continue to hire on the back of demand for services.
It is looking to open development centres in smaller centres like Ahmedabad and Kochi in the near future, Kalra said.
The company scrip gained 1.88 per cent to close at Rs 3,631.30 apiece on the BSE on Friday against gains of 0.70 per cent on the benchmark.
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