InvestorQ : Is it true that IT revenues for the current year could be better than originally anticipated?
vaishnavi mhatre made post

Is it true that IT revenues for the current year could be better than originally anticipated?

Answer
image
vidhya Laxmi answered.
5 months ago
Follow

You are right; this has been explained in detail in the latest set of projections made by rating firm, ICRA. According to the report by ICRA, the IT revenues of Indian companies for FY21 could be flat to mildly positive. The same ICRA had earlier estimated that IT services could see a sharp fall in revenues in FY21. That fear appears to be out of the way now.

This is a substantial improvement from the negative growth estimated previously. ICRA has rightly noted that while COVID remained a major concern for Indian IT, the shift to virtual models and WFH paradigms pushed growth and raised the credit profile of most of the large and established IT companies in India.

Therefore, in dollar terms, the growth in revenues is expected to be flat even as profits are likely to benefit from better utilization and better cost management. This is in sharp contrast to the earlier estimate of -3% de-growth. ICRA noted that while the supply side shocks had been addressed by IT Companies, demand shock remains an X-factor.

1 Views