{"id":18089,"date":"2022-07-12T13:42:45","date_gmt":"2022-07-12T08:12:45","guid":{"rendered":"https:\/\/flattrade.in\/kosh\/?p=18089"},"modified":"2022-07-12T14:32:55","modified_gmt":"2022-07-12T09:02:55","slug":"it-services-firms-to-register-double-digit-revenue-growth-in-fy23-says-crisil","status":"publish","type":"post","link":"https:\/\/flattrade.in\/kosh\/it-services-firms-to-register-double-digit-revenue-growth-in-fy23-says-crisil\/","title":{"rendered":"IT services firms to register double-digit revenue growth in FY23, says CRISIL"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"18089\" class=\"elementor elementor-18089\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-d08f6aa elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"d08f6aa\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-438c147c\" data-id=\"438c147c\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-5fba4209 elementor-widget elementor-widget-text-editor\" data-id=\"5fba4209\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>The Indian information technology services industry is expected to grow at 12-13% in FY23, aided by strong demand for or new-age technologies and fall in Indian rupee, according to rating agency CRISIL.<\/p><p>The slower growth of the IT industry in FY23 compared to 19% growth rate in the last fiscal is due to tightening of IT expenditure by corporates amid the inflationary headwinds in the United States (US) and European Union (EU), which together contribute almost 85% to the sector\u2019s revenue.<\/p><p>The rating agency said that revenue growth is expected to come from various industries which are making a shift towards automation, digitalisation and digital transformation services.<\/p><p>Aditya Jhaver, Director, CRISIL Ratings, said, \u201cWith spending on cloud infrastructure expected to grow 1.5 times in the next three years and increasing adoption of new-age technologies such as cybersecurity and Internet of Things, the digital share of revenue of Indian IT service players may cross 50% over the next 1-2 years.\u2019<\/p><p>However, Jhaver noted that rising inflationary headwinds in key client countries may spur corporates to curb discretionary spending and moderate revenue growth over the medium term.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-6b839e5d elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"6b839e5d\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-1427b0ba\" data-id=\"1427b0ba\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-3f0e8bf0 elementor-widget elementor-widget-heading\" data-id=\"3f0e8bf0\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><br>Revenue Mix<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-60e59fed elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"60e59fed\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-45e85fd7\" data-id=\"45e85fd7\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-2210533e elementor-widget elementor-widget-text-editor\" data-id=\"2210533e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Almost 30% of sales of the Indian IT services sector comes from the BFSI verticals, while retail, manufacturing, and telecom verticals contribute 15% each.<\/p><p>The rating agency said revenue growth from BFSI will remain healthy at 15-17% in FY23, compared to 18% last fiscal, despite the increasing interest rates, backed by rising digital transactions, predictive analytics, cloud and data security.<\/p><p>However, companies in the retail, manufacturing and telecom verticals are expected to tighten IT spending amid the highest inflation rates in the past two decades in the key US and EU markets. Hence, revenue growth from these verticals is seen moderating to 11-13% this fiscal from 15-17% last fiscal.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-2ea077cf elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"2ea077cf\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-587fcd87\" data-id=\"587fcd87\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4e85a78c elementor-widget elementor-widget-heading\" data-id=\"4e85a78c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><br>Operating Profitability<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-5e1bc2e1 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"5e1bc2e1\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-6cbbef37\" data-id=\"6cbbef37\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-7429c7b1 elementor-widget elementor-widget-text-editor\" data-id=\"7429c7b1\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>The report by CRISIL said that the IT industry&#8217;s operating profitability will remain healthy, but could decline to the pre-pandemic low of 22-23%, compared with about 24% last fiscal due to higher expenses.<\/p><p>Tanvi Shah, Associate Director, CRISIL Ratings, said, \u201cThe operating profitability will moderate to the pre-pandemic lows given the rising employee costs, both to retain talent amid high attrition and maintain a larger employee base.\u201d Shah added revival in international travel and higher discretionary costs will also weigh on operating profitability.<\/p><p>However, margins for the IT companies will be supported by premium pricing as well as effective cost levers through maintaining a healthy off\/on-shore employee mix and reducing sub-contracting amidst rising visa approvals with roll-back of protectionist policies in key service regions.<\/p><p>Meanwhile, the rating agency noted that credit quality of the sector will remain \u2018positive\u2019, supported by continued healthy cash generation, strong balance sheets, and robust liquid surpluses. The acquisitive nature of players is expected to sustain, mainly for enhancing digital share of revenues, but this is unlikely to weigh on their credit profiles.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-bab053f elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"bab053f\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-c147398\" data-id=\"c147398\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-fa70530 elementor-widget elementor-widget-heading\" data-id=\"fa70530\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><br>Stocks To Watch<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-b773a69 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"b773a69\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-cd5e1b9\" data-id=\"cd5e1b9\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-fe35550 elementor-widget elementor-widget-text-editor\" data-id=\"fe35550\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Below are some of the top Indian IT companies listed according to market cap:<br \/><br \/>Tata Consultancy Services, Infosys, HCL Technologies, Wipro, Tech Mahindra, Larsen &amp; Toubro Infotech, Tata Elxsi, MindTree, MphasiS, L&amp;T Technology Services, Oracle Financial Services, Persistent Systems, Coforge, KPIT Technologies, Happiest Minds Technologies, Birlasoft, Cyient, Sonata Software, Mastek, Zensar Technologies, R Systems International, Newgen Software Technologies, Black Box, Genesys International, Datamatics Global Services, InfoBeans Technologies, Cigniti Technologies, RPSG Ventures, Accelya Solutions India, Sasken Technologies, Expleo Solutions, Nucleus Software Exports, Magellanic Cloud, Saksoft, Ramco Systems.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-48257312 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"48257312\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-2eb09fb6\" data-id=\"2eb09fb6\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6c343523 elementor-align-center elementor-widget elementor-widget-button\" data-id=\"6c343523\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/ekyc.flattrade.in\/openaccount\/?utm_source=Blog&#038;utm_medium=organic&#038;utm_campaign=Demat+Account\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Open a Free Demat Account<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"The Indian information technology services industry is expected to grow at 12-13% in FY23, aided by strong demand&hellip;","protected":false},"author":5,"featured_media":18093,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"csco_display_header_overlay":false,"csco_singular_sidebar":"","csco_page_header_type":"","csco_page_load_nextpost":"","csco_post_video_location":[],"csco_post_video_location_hash":"","csco_post_video_url":"","csco_post_video_bg_start_time":0,"csco_post_video_bg_end_time":0,"csco_post_video_bg_volume":false,"footnotes":""},"categories":[65],"tags":[204,46,43,78,48,26,77,47,24,525,23],"class_list":["post-18089","post","type-post","status-publish","format-standard","has-post-thumbnail","category-industry","tag-it","tag-market-news","tag-market-update","tag-nifty","tag-nifty-today","tag-nse","tag-sensex","tag-sensex-today","tag-share-market","tag-software","tag-stock-market","cs-entry","cs-video-wrap"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - 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