Newgen Software does not see rupee appreciation as a headwind, Diwakar Nigam, CMD, told CNBC-TV18.

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“We do hedge about 20 percent, but we do not see it as a concern because it is just a small change in the margins for the company. Our company has very good gross and EBITDA margin,” Nigam said, in an interview to CNBC-TV18.

On growth, Nigam said, “Opportunity for us is pretty big and we expect growth to be good in the coming one-two years. So, for us, things are looking very good.”

He further said, “However, the last two years should not be counted. Prior to that, we were growing at 23 percent CAGR – that’s the kind of growth we can again achieve and that's what we are aiming for. We have a presence in most of the geographies, which are big for us, so we will be able to do much better and look for high double-digit growth,” he said.

On margins, he said, “I think we can easily manage 23 to 25 percent EBITDA and 17 to 19 percent profit margins. So, I think margins are not the issue. For us, the issue is being able to close the deal, to deliver etc., and our existing customers are doing very well, so that provides a good cushion for us.”

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He believes the hybrid work model is here to stay. Nigam said, “The whole world is changing into a hybrid model where the workforce will partly work from the office and partly from home, this would mean that most of the organisations would have to go for digital transformation and automation and it will be deep as well as wide, because everybody may not be working from offices.”

On attrition, he said, “Attrition is a big problem, and getting talent is also becoming very difficult. However, we are not as dependent on manpower and our main business remains product licensing, annual technical support and SaaS, so we are less affected by it.”

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He further said that COVID-19 cases rising in the southern part of the US does not affect the company.

“Middle East is growing well. We are getting good traction from the Asia Pacific region. This is the COVID era and you can't say that COVID will go away. It will not go away and that is why the opportunity is also there because we think the hybrid model is the only model and every organisation will have to go for it,” he mentioned.

For the entire management interview, watch the video

(Edited by : Dipika Ghosh)