• Latest
  • Trending
Will growth of Indian IT industry recover this year!

Will growth of Indian IT industry recover this year!

13 May 2024
Data Story: LME Aluminium price remains stable despite tariff concerns

Data Story: Will Aluminium price sustain current rally amid rising Middle East conflict?

23 June 2025
Paradip Port Authority hits milestone: Handles 41.12 MMT cargo

Data Story: Vessel Position Report

23 June 2025
Accenture forecasts slower growth as clients cut tech spending

Accenture forecasts slower growth as clients cut tech spending

23 June 2025
xAI’s Grok models are now on Oracle Cloud Infrastructure

xAI’s Grok models are now on Oracle Cloud Infrastructure

23 June 2025
Iran threatens to block Strait of Hormuz after US strikes

Iran threatens to block Strait of Hormuz after US strikes

23 June 2025
LIC Housing Finance reduces lending rates to 7.50% on new home loans

LIC Housing Finance reduces lending rates to 7.50% on new home loans

23 June 2025
Data Story: Indian spices prices

Data Story: Chilli exports highest among spices in FY25 from India

22 June 2025
Data Story: Cochin Port achieves highest ever cargo traffic in FY25

Data Story: Cochin Port achieves highest ever cargo traffic in FY25

22 June 2025
Group of shareholders ask investors to vote against Elon Musk’s pay package, says Report

Tesla to open first showroom in India this July

21 June 2025
Data Story: Global Oil Price Fluctuations

Data Story: Brent crude jumps 18% in 10 days amid Israel-Iran conflict

20 June 2025
SpaceX could hit $350 billion valuation

Testing failure adds to a growing list of Starship setbacks, what about Mars’ dream now?

20 June 2025
Paradip Port Authority hits milestone: Handles 41.12 MMT cargo

Shipping charges jump, what next?

20 June 2025
  • Careers
  • Advertisement
Tuesday, June 24, 2025
  • Login
Data Biz Times
  • Data Story
  • Artificial Intelligence
  • Media Release
  • Technology
  • Business
  • Contact Us
No Result
View All Result
  • Data Story
  • Artificial Intelligence
  • Media Release
  • Technology
  • Business
  • Contact Us
No Result
View All Result
Data Biz Times
No Result
View All Result
Home Technology

Will growth of Indian IT industry recover this year!

by databiztimes.com
in Technology
Reading Time: 2 mins read
0
Will growth of Indian IT industry recover this year!

By Anindita Nayak

Bhubaneswar, 13 May:

Indian IT sector’s outlook for the current financial year seems conservative as compared to last fiscal year as large firms project to grow in low single-digits, while mid-tier IT firms guide for high single-digit growth rates in FY25.

In a report, brokerage firm Prabhudas Lilladher (PL) noted that the revenue growth projections for FY25 are discouraging.

“Unlike in FY24, companies have become more conservative in FY25 projections, and are baking in anticipated delays in executions and project closure activities. However, if the spending recovery coexists with an anticipated macro recovery in the near-term, then we might see an upward revision to the estimates for the companies as they progress through the year,” the brokerage firm said in its report.

According to the report, FY24 concluded with another quarter of lackluster performance in the IT services sector. Although revenue growth was in line with market expectations, there was a disappointment in margin improvement or earnings growth for certain companies.

“The ongoing volatility in key verticals such as BFSI, retail, and communications continues to impact the top-line performance, with most companies reporting either subdued or positive USD growth within BFSI, while retail growth showed weakness,” the report added.

The operating margin was flat QoQ (quarter-on-quarter) for the IT sector at 19.7%.

Despite weak top-line growth, margins for both tier-I and tier-II (excluding Persistent) companies remained high at approximately 20.1% and 15.4%, respectively. This was attributed to a decline in net headcount addition for the sixth consecutive quarter, particularly among tier-1 companies, along with reduced usage of subcontracting.

The deal TCV (total contract value) during the quarter was strong at $27 billion, up 33% on sequential basis. Median Book-to-Bill (BTB) remains elevated at 1.2x for the sector, however the revenue conversion remains a challenge.

The report noted that IT services providers are grappling with challenges such as weaknesses in discretionary spending, deferrals of transformation projects, and increased scrutiny, leading to delays in execution and constraints on hiring.

“Companies continued to prioritize spending on essential areas and focus on reducing costs across the board during the fourth quarter. However, some companies experienced significant project closures or cancellations due to uncertainties in the macroeconomic environment,” it noted.

databiztimes.com

databiztimes.com

Related Posts

Tech Mahindra partners with Hanab for IT modernization post-carve out

Tech Mahindra partners with Hanab for IT modernization post-carve out

by databiztimes.com
5 June 2025
0

DBT Bureau Pune, 5 June 2025 Tech Mahindra, a leading global provider of technology consulting and digital solutions to enterprises...

Silicon Labs and Wirepas surpass 10 million chipsets, powering industrial IoT at scale

Silicon Labs and Wirepas surpass 10 million chipsets, powering industrial IoT at scale

by databiztimes.com
4 June 2025
0

DBT Bureau Pune, 4 June 2025 Silicon Labs, the leading innovator in low-power wireless solutions, and Wirepas, a global leader...

Apple products transform care at Emory Healthcare | Company News

Apple products transform care at Emory Healthcare | Company News

by databiztimes.com
23 May 2025
0

DBT Bureau Pune, 23 May 2025 At Emory Hillandale Hospital in Lithonia, Georgia, Apple products are now the standard, marking...

Hexaware Earns AWS Data & Analytics Competency

Hexaware Earns AWS Data & Analytics Competency

by databiztimes.com
14 May 2025
0

DBT Bureau Pune, 14 May 2025 Hexaware, a global IT services and solutions provider, announced that it has achieved the...

DBT Bureau

Data Biz Times © 2025. All Rights Reserved.

Navigate Site

  • Media Release
  • Blog
  • Contact Us
  • Privacy Policy

Follow Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Media Release
  • Data Story
  • Business
  • Tech
  • Artificial Intelligence

Data Biz Times © 2025. All Rights Reserved.