ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2023
  • Markets
    • Stocks
    • Global Markets
    • IPO
    • Companies
    • Currency
    • Commodities
  • My Money
  • Calculators
    • Income Tax Calculator
    • Home Loan/EMI Calculator
    • Mutual Fund Returns Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • SIP calculator
    • Lumpsum Calculator
    • SWP Calculator
  • Videos
    • M Se Market
    • Jeb Zindagi Zaroorat
    • Light Camera Stocks
    • Tech Takes
    • Big Bulls Ka Nishana
    • Paisa Wasool
    • Commodity Ke MrityunjayMantra
    • The Right Property Show
  • Economy & Infra
    • Policy & Initiatives
    • Agriculture
    • Telecom
    • Aviation
    • Railways
    • Retail
    • Roadways
    • World Economy
  • Exclusive
    • Wealth Guide
    • Interviews
  • Auto
    • Cars
    • Bikes
    • Electric Vehicle
    • Commercial Vehicles
  • Tech
    • Mobiles
    • Gadgets
    • Reviews
    • Tips and Tricks
    • Apps
  • Start ups
    • Funding
    • Appointments
  • Real Estate
    • Home Buyers
    • Builders
  • Axis MF
  • Trending
    • Entertainment
    • Politics
    • Lifestyle
    • Travel
    • Sports
    • Viral
    • Education
    • Jobs
Read in App
Business News » India News

'Indian IT cos' credit profile to be stable despite pressure'

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App

The credit profile of Indian IT services firms is expected to remain stable despite pressure on revenue growth and margins, rating agency Icra said today.

"Despite pressures on growth and margins over the medium term, free cash flows of Indian IT services companies are expected to remain healthy though there could be moderation in the quantum of such cash flows," Icra said in a statement.

It added that the credit profile of these companies is also supported by net cash position with significant liquidity in the form of surplus investments generated out of past cash flows, despite healthy dividend payout and share buybacks.

"The growth of Indian IT services companies is impacted by lower demand led by uncertain macroeconomic environment, lower deal sizes in digital technologies, cloud adoption and high competitive intensity from local as well as international players," Icra Vice-President Gaurav Jain said.

He added that the Indian IT companies are in the midst of reorienting their business models, focusing more on higher- end services such as IT consulting and emerging technologies (digital).

Indian IT services players' market share of the global IT sourcing market stood at 67 per cent in 2016 compared to 60 per cent in 2012.

"We expect large Indian IT companies to grab a higher share of the digital services space over the next three years," he said.

Jain also said the margins for Indian IT services firms will continue to reflect the challenging operating environment. This includes pricing pressure, wage inflation, higher onsite costs necessitated by visa curbs as well as lower discretionary spend by corporate.

According to Jain, the industry is driving efficiencies through deployment of operating levers like higher share of fixed price contracts, lesser idle resources and automation benefits.

"However, these factors will provide limited cushion leading to overall decline in margins from 23.5 per cent in FY2017 to 21.2 per cent in FY2020-end. The profitability for Indian IT services players remains sensitive to INR depreciation vis-a-vis major currencies such as US dollar, pound and euro...," he added.

 

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Economy
Updated: Thu, Oct 26, 2017
07:39 pm
PTI
RELATED NEWS
Budget 2023: Why budget's printing was shifted to North Block from Rashtrapati Bhavan? Budget 2023: Why budget's printing was shifted to North Block from Rashtrapati Bhavan?
Govt to sell 30 lakh tonnes of wheat in open market till March to control prices of wheat, atta Govt to sell 30 lakh tonnes of wheat in open market till March to control prices of wheat, atta
India’s economic fortunes critical for global growth, its rise being welcomed by world: Kumar Mangalam Birla India’s economic fortunes critical for global growth, its rise being welcomed by world: Kumar Mangalam Birla
Budget 2023: Boosting India's manufacturing sector - Experts shed light Budget 2023: Boosting India's manufacturing sector - Experts shed light
Budget 2023 EXCLUSIVE: Govt may extend 15% corporate tax levy deadline beyond 31 March 2024 Budget 2023 EXCLUSIVE: Govt may extend 15% corporate tax levy deadline beyond 31 March 2024

LATEST NEWS

On path of profitability: Ritesh Agarwal's OYO estimates revenue to be US $751 mn in 2022-23

Adani Group rules out changes in price, dates of FPO amid Hindenburg report; company confident offer share sales going through

Adani Group-Hindenburg saga: MSCI seeks feedback on Adani Group over Hindenburg report

Budget 2023: Why budget's printing was shifted to North Block from Rashtrapati Bhavan?

Piyush Goyal clears 15 Research & Development textile projects in key strategic areas

Budge 2023: Rationalise, simplify direct and indirect taxes in India, US industry’s expectations from FM

This Mutual Fund launches new low-cost, open-ended NFO for bumper returns; investment starts from Rs 5000

Porsche's car delivery in India rises 64% to 779 units in 2022

Pathaan box office collection: Shah Rukh Khan-starrer breaks all records — Check collection figures of SRK's last 5 films

NTPC Q3 Results: Net profit jumps nearly 5% YoY to Rs 4,854 cr; company announces dividend

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2023. India Dot Com Private Limited. All Rights Reserved.
LIVE TV