Mumbai, March 18: Indian IT sector's revenue growth is expected to come at a tepid 3-5 per cent in FY25, a domestic rating agency said on Monday. The sector's hiring will "remain muted" in the near-term until the growth momentum picks up, Icra Ratings said. However, the companies' profitability is expected to be resilient amid concerns on topline growth, it said, adding the operating profit margins for the USD 250 billion Indian IT sector will come at a healthy 21-22 per cent in FY25.
The agency said in the first nine months of the ongoing 2023-24, the industry has posted a revenue growth of just 2 per cent, as against 3-5 per cent it had estimated for the sector in the past. The topline growth for the first nine months of FY23 had stood at a healthy 9.2 per cent. Persistent macroeconomic headwinds in key markets of the US and Europe, which has led to lower discretionary IT spends by corporate has led to expectations of tepid revenue growth even in FY25, its sector head Deepak Jotwani said. India's Gaming Sector Poised fout-diljit-dosanjhs-mumbai-show-tickets-booking-for-december-19-event-6434336.html" class="drop-thumb-link" title="Dil-Luminati Tour 2024: Everything You Need To Know About Diljit Dosanjh’s Mumbai Show Tickets Booking for December 19 Event">Dil-Luminati Tour 2024: Everything You Need To Know About Diljit Dosanjh’s Mumbai Show Tickets Booking for December 19 Event