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IT FIRMS: MIND THE BEND
Fortune India
|November 2023
Demand slowdown has forced the big boys of Indian IT to cut their growth outlook for FY24. As macro uncertainty looms large, companies are shifting focus to controlling costs to protect profitability.

ON OCTOBER 12, when Bengaluru-headquartered Infosys declared its Q2 FY24 results, the company restated its annual revenue growth guidance to 1-2.5%. In successive quarters since the beginning of the year, the IT major has tweaked the number. At the beginning of FY24, Infosys had estimated a revenue growth of 4-7%, which after the end of the first quarter, was reduced to 1-3.5%.
On the same day (October 12), Noida-headquartered HCL Tech, which also declared its second-quarter numbers, put its full-year growth guidance at 5-6 %, down from 6-8% earlier.
Two of the three largest Indian IT services companies by market cap and revenue (TCS does not provide annual revenue guidance) have turned bearish this year on weakening demand in the U.S. and Europe, which form the backbone of their revenues. While good deal wins seem to be the silver lining, management commentaries signal uncertainties ahead. Companies' approach, meanwhile, has been defensive — tweaking manpower costs and saving expenses to protect profitability.
Demand Slowdown
This story is from the November 2023 edition of Fortune India.
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