Information technology (IT) services companies are likely to report muted revenue growth at four to six per cent in the current fiscal year 2024-25 (FY25) for a second consecutive year. Despite the challenges, domestic credit rating agency ICRA projects the sector’s operating profit margin (OPM) to remain healthy at ~22 per cent in FY2025, with attrition levels having declined considerably and expected to stabilise over the near term.
Major IT services companies including Coforge, Cyient, LTIMindtree, among others extended gains during Tuesday’s market session after the sector outlook. Despite expectations of a subdued growth, ICRA maintains its stable outlook on the Indian IT services industry, which is led by expectations of healthy earnings, cash flow generation, and the industry players’ strong balance sheets.
