Persistent to hire 2,000 freshers in FY22; flags attrition concerns for IT industry having package of 4.5 LPA

Persistent to hire 2,000 freshers in FY22; flags attrition concerns for IT industry having package of 4.5 LPA

admin | 2021-07-25
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Persistent to hire 2,000 freshers in FY22; flags attrition concerns for IT industry having package of 4.5 LPA 

Mid-sized IT player Persistent Systems is planning to hire 2,000 freshers in 2021-22 and the company will recruit lateral entries as per business growth.

The mid-sized IT player, Persistent Systems is looking to hire 2,000 freshers in 2021-22 and will recruit lateral entries as per business growth, a senior official said on Friday. The company also 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 digitalization.

The Pune-based company had reported a 68% growth in its June quarter net at Rs 151.2 crore late on Thursday.

"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 over a call.

Its 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 anymore.

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.

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 attrition controlling measure where a staff member's career trajectory is uplifted.

The company scrip was trading 6.86% up at Rs 3,023.35 apiece on the BSE as against gains of 0.36% on the benchmark.

The Pune-based company had reported a 68% growth in its June quarter net at Rs 151.2 crore late on Thursday.

"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 over a call.
 

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