Persistent Systems announces salary hike, fresher hiring target in FY222 min read . Updated: 23 Jul 2021, 03:35 PM IST
- The IT firm had reported a 68% jump in consolidated net profit to ₹151.2 crore for the April-June quarter of this year
Pune-based IT company Persistent Systems will hire around 2,000 freshers in 2021-22 and will recruit lateral entries as per business growth. The mid-sized IT player has flagged concerns about pressures on attrition returning back in the information technology industry as the business sees an overall improvement due to a greater focus on digitalisation.
"We will be hiring 2,000 freshers in FY22 and will hire laterals as per the business growth," the company's chief financial officer Sunil Sapre told news agency PTI over a call.
The company had reported a 68% jump in consolidated net profit to ₹151.2 crore for the April-June quarter of this year. The firm had posted a net profit of ₹90 crore in the year-ago period.
During this quarter, Persistent has also acquired Sureline Systems to bolster its cloud capabilities.
The firm's chief executive Sandeep Kalra said typically a fresher is trained for six months before being put on a project. Sapre said in the last three quarters, it has hired 4,200 people, which included 3,500 lateral hires, and added that the fresher to lateral hires ratio will not be the same any more.
Kalra said sequential pressures are being observed on the attrition front as it happens whenever the business environment is good in the sector.
“There will be pressure on the talent side," he said. The company had 14,904 employees as of June 2021 -- 37% higher than the same base in the year-ago period.
Employees to be given yearly hikes from July
Sapre said all the employees will be given out their yearly hikes from July onwards, which will put pressure of up to 2.70% on the profit margins.
However, a variety of levers will be deployed to minimize the impact to 0.75-1%, he added. The company is targeting to improve utilization, which stood at 78% on a blended basis, by 2 percentage points through a variety of initiatives over the next two quarters, Sapre said.
During the June quarter, the profit margins declined because of the visa filing-related costs and a one-time impairment hit, Sapre said, adding that both the factors will not be there going forward.
He added that it has applied for H1-B visas to send senior resources to the US, which accounts for 80% of its revenues, looking at the business improvement and also as an attrition controlling measure where a staff member's career trajectory is uplifted.
The company scrip was trading 6.86% up at ₹3,023.35 apiece on the BSE as against gains of 0.36% on the benchmark.
With agency inputs
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