Persistent targets 14.5% margin recovery by FY25

After a 50 basis points margin compression during the June quarter, IT company Persistent System said it was confident of recovering ground and maintaining margin at last year’s level of 14.5% by the end of FY25.

Persistent CFO Vinit Teredesai attributed the margin compression to increased subcontracting costs, a doubling of H-1B visa applications, higher sales and general administration expenses, and employee stock option costs. Although these expenses impacted the first quarter, Teredesai said that they are investments expected to yield benefits in the future.