Indian IT services industry to see modest 3-5% revenue growth in FY25: ICRA
Despite expectations of modest revenue growth, credit rating agency ICRA maintained its stable outlook on the Indian IT services industry, “led by a well-established business position, expectations of healthy earnings and cash flow generation, and strong balance sheets of the industry players.”
The revenue growth of the Indian IT services industry is expected to improve mildly from 2 per cent in the nine months of the current fiscal year but remain modest at 3-5 per cent in FY2025, a new report showed on Monday.
Despite expectations of modest revenue growth, credit rating agency ICRA maintained its stable outlook on the Indian IT services industry, “led by a well-established business position, expectations of healthy earnings and cash flow generation, and strong balance sheets of the industry players.”
“The banking, financial services and insurance (BFSI) and telecom segments have contracted more than the others. Nonetheless, critical spending and cost optimisation deals continue to gain traction, supporting the growth prospects for the Indian IT services companies to some extent,” said Deepak Jotwani, Assistant Vice President and Sector Head, ICRA.
ICRA expects a likely pick-up in the growth momentum once the macroeconomic headwinds subside.
The credit rating agency also expects hiring to remain muted in the near term with gradual pick-up until the growth momentum improves.
“Moreover, attrition levels are expected to stabilise over the near term, inching closer to the long-term average of 12-13 per cent, as overall slowdown in growth momentum and strong hiring in the previous fiscal has corrected the demand-supply mismatch witnessed earlier,” Jotwani noted.
The Indian IT services industry continues to have a net cash surplus position with strong liquidity owing to high level of operating cash flows and modest capex and working capital requirements.
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.
RECOMMENDED STORIES
Top 10 PSU Stocks in 1 Year: Rs 1 lakh investment in top stock has given Rs 5.55 lakh post-tax returns
SSY: Rs 12,500 pm investment will help you get nearly Rs 70 lakh for your girl child in this scheme; know how
Nautapa 2024: 9 days of severe heat to begin tomorrow, temperatures may reach 50°C in many places | Precautions during extreme heat
Delhi Metro Timing Update For Lok Sabha Elections 2024: DMRC changes timings of metro train services for voting; check time table of May 25
Gold and Silver rate today (May 23, 2024): Precious metal futures trade under pressure, yellow met below Rs 72,650, white metal near Rs 91,200
Top 3 PSU Mutual Funds With Best SIP Returns in 10 Years: Rs 10K SIP in top fund has given Rs 46 lakh; get details
02:08 PM IST