Our aspiration is to make Persistent a $2 billion plus company in next three years: CEO

economictimes.indiatimes.com:

Sandeep Kalra, CEO, Persistent Systems, says “as we go ahead, as the market conditions stabilise, that will give us the opportunity to have the leverage of all the investments we have done whether they are in the next generation technologies like generative AI or increased sales and marketing investments, etc, and that should help us take the margin up. We still stand by our aspiration of growing the margins by 200 to 300 basis points over the next two to three years.”

Your conference call commentary was that your FY25 margins will be similar to FY24, but that has missed Street expectations. What are the headwinds or are you being conservative?
Sandeep Kalra: From a margin perspective, what we are saying is this. The margin has to be looked at in the context of the revenue growth that we deliver. So, if we are going to be looking at a revenue growth which is somewhere in similar lines as what we have done in this year, that is what our aspiration is, then at that point in time you have to optimise for one or the other.

The macro condition being where it is, if the demand environment continues to be tough, which we see as of this point in time, the same as the last year, we are basically prioritising growth with similar margins and as we go ahead, as the market conditions stabilise, that will give us the opportunity to have the leverage of all the investments we have done whether they are in the next generation technologies like generative AI or increased sales and marketing investments, etc, and that should help us