iGate aims at 40% gross margin

iGate Global Solutions, an integrated technology and operations firm with a global services delivery model, will target 40 per cent gross margin and 15 per cent ebidta by March 2007, a top official said here.

"This year we expect the overall profitability to be better. We are currently at 30 per cent gross margin and 4-4.5 per cent ebidta (earnings before interest, depreciation, taxes and amortisation) and our goal is to be at 40 per cent gross margin and 15 per cent ebidta by march 2007," chief executive officer of iGate, Phaneesh Murthy told reporters here.

iGate reported a revenue of Rs 580 crore for 2004-05, compared to Rs 570 crore in the previous year.

"While we are profitable, the two factors "� rupee appreciation and a 13 per cent salary increase announced for our employees for 2005-06 "� will have a 4-5 per cent impact on the margins," he said.