ETMarkets Management Talk | Margins may improve from Q3: Cigniti Tech CEO Srikanth Chakkilam

economictimes.indiatimes.com:

NEW DELHI: After reporting a decline in margins in the June quarter due to performance-based appraisals for FY24, Cigniti Technologies is hoping to be back on the growth path from Q3. “As we move forward, our strategic initiatives, like a better offshore-onshore mix and focus on long-term value creation, would pave the way for improved margins, potentially from Q3 onwards,” said Cigniti Technologies CEO Srikanth Chakkilam. Edited excerpts:During the quarter, your revenue improved sequentially but margins declined. Do you see margins improving from Q3 onwards?We have reported a sequential growth of about 3.4% on a quarter-on-quarter basis, which we believe to be a fair performance given the recent macroeconomic conditions.

We have, however, observed a decline in margins during this current quarter due to the performance-based appraisals for FY24. Nevertheless, during these challenging times, we are cautiously optimistic. Our capacity to adapt to the changes and maintain agility has been symbolic in our journey, and we intend to continue delivering the same.

It is noteworthy that we refrain from offering fixed guidance, given the continuously evolving nature of the situation. Our primary focus shall remain to respond to the market dynamics with a defined approach while ensuring optimal outcomes for our stakeholders. As we move forward, our strategic initiatives, like a better offshore-onshore mix and focus on long-term value creation, would pave the way for improved margins, potentially from Q3 onwards.