In an interview with CNBC-TV18, Upinder Zutshi, MD of Infinite Computer Solutions spoke about the quarterly numbers of the company and the road ahead. He said, "For this year, we would be guiding a revenue growth rate of 27-30%"
Below is the verbatim transcript of his interview with Reema Tendulkar and Ekta Batra of CNBC-TV18. Also watch the accompanying video. Q: Your implied EBITDA margins are flat close to about 17% similar to what you did in Q4 of this quarter. Do you not foresee any kind of improvement in your margins in next year? A: Last year has been very good. We exceeded the top end of the guidance both for revenue as well as the margins. For this year, we would be guiding revenue growth rate of about 27-30% and 24-26% operating margin growth. We expect the operating margin to stay at the same level as last year and the reason for that is largely we have to balance the revenue growth along with the margin growth. There are many businesses within our portfolio that are at different margin levels. The way the share of the businesses takes place in the next 12 months, we expect to maintain operating margins at about 17% level while as go for a revenue growth which is about 28-30%. Q: Could you tell us how much further can your offshore revenues go up by in this year because that is a trend which is increasing and also the billing rates in offshore have gone up to about USD 21 versus USD 20? Could you also tell us the wage hikes that you will be undertaking and what kind of pressure that would put on your margins? A: If you look at the strategy in terms of the margin, we are following a slightly differentiated strategy, its little beyond onsite and offshore. What we are trying to do is to essentially change the business mix and move away from the traditional ADM type of IT services that we are use to and have been providing for so many years. To move over, we get aligned with the customer at a lot more strategic level in terms of engaging with them on revenue share bases. So, the transformation that we are putting in place for growth as well as margin expansion is changing the business mix moving away from ADM to higher margin, larger projects in infrastructure management, managed services as well as intellectual property based programmes and solutions. As part of that process there are businesses that we do in the country that we operate at and also there are businesses wherever it was applicable we do out of the offshore. Obviously offshore being our strength as we move forward and thatDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!