In an interview to CNBC-TV18, Manu Parpia, MD & CEO of Geometric spoke about the results and his outlook for the company.
Below is the verbatim transcript of Manu Parpia's interview to Sonia Shenoy & Anuj Singhal.
Sonia: The margins have fallen quite a bit because of salary revisions effective April 1. What was the exact impact because of that?
A: The salary revision took about couple of points of margins which we had anticipated but it is important to compare because every year we give salary increase in April, so if you compare it with last year, the margins are about 5 points higher. So that is a better method comparing rather than quarter on quarter.
Anuj: The new accounting numbers also determines a lot of your numbers but in terms of dollar revenues you grew 1.9 percent quarter-on-quarters. What kind of run rate do you think you will maintain going forward?
A: I think we should be able to maintain that or a bit better. There were some delays in orders which we didn't receive in the quarter, so they spilled over to the coming quarters. So I am looking forward to a little bit better performance in this quarter in terms of revenue. However, we do not see spectacular revenue growth on one side but we will see steady improvement in margin because of natural replacement that we do - induction of fresher and so on that goes on throughout the year.
Sonia: What is the deal pipeline looking like? How many deals are you chasing and your deal wins have picked up to about USD 15.5 million?
A: The deal wins have improved. The current pipeline stands at over USD 80 million. So it is looking decent. We have some interesting deals in the pipeline but we have to win them. So it remains interesting only till we win then, but a number of longer term transactions are in discussion at the moment.
Anuj: What about pricing for some of these deals?
A: Pricing doesn't seem to be a pressure point. Obviously pricing remains an issue but I do not see any big pricing pressure in any of these deals.
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