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IT companies set for revenue growth of up to 2.5% in Q2 FY25
The Business Guardian
|October 06, 2024
IT companies are poised for improved revenue performance, with sequential growth expected to range between 0.0 per cent and 2.5 per cent in USD terms for Tier 1 firms, in the second quarter of FY25, according to Centrum report.
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This recovery is being driven by the ramp-up of recently signed deals and an enhanced TCV (Total Contract Value) to revenue conversion.
A significant factor bolstering this positive outlook is the reduction in deal leakages compared to FY24, signaling stronger operational momentum for the sector.
IT services companies are navigating a challenging landscape due to ongoing macroeconomic concerns in key markets such as the US and Europe.
However, early signs of recovery are visible, particularly in verticals like Banking, Financial Services and Insurance (BFSI), Technology, Media and Telecommunications (TMT), and Manufacturing.
Sectors like Healthcare and Manufacturing continue to demonstrate strong demand, providing a buffer against broader market headwinds.
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