Mid-sized IT firm Persistent Systems has said it is eyeing $1 billion in revenue and will focus on acquisitions to achieve the target.
“Along with our recently-closed acquisition, our run rate (revenue) is around $361 million a year and we are sticking to the target of $1 billion, which is natural aspiration for a company of our size,” Persistent Chairman and Managing Director Anand Deshpande told the news agency .
The Pune-headquartered company had in December 2014 said it would like to achieve the $1 billion revenue mark in three-to-five years.
Deshpande, however, declined to give a time frame.
“It is tough to give the time frame. After achieving the billion dollar revenue mark, we will aspire for the next step, which will be $2 billion in revenues,” he explained.
In the first nine months of the fiscal, the company clocked 9.9 per cent growth in its dollar revenues at $251.20 million.
Industry body Nasscom has said Indian companies will be clocking a revenue growth of 12-14 per cent in 2015-16.
Earlier reports had said the company had set up a dedicated team for mergers and acquisitions.
Deshpande said over half of the revenue growth in the October-December period this fiscal came on the back of acquisitions and the company continues to chase such opportunities.
Persistent had cash and equivalents of Rs870 crore as of December 31, but Deshpande declined to give any further details on acquisitions.
“We are looking at opportunities in the IT products and solutions space. There are talks which are on but it is hard to specify when one would fructify,” he said.
Deshpande said in the IT services vertical, the company is witnessing an organic growth in revenues.
On the pricing situation, he said it is “not a challenge” and rates are “steady or higher”. He said the margins have been compressed a bit due to the investments it is making on the digital front.