Indias IT companies to report muted growth during 4QFY25: Report

New -delhi [India]April 5 (Ani): The Indian information technology sector is expected to report muted growth for the fourth quarter of the FY25 (January-March period), according to a report by Systematix Institutional Research. The report attributed this slowdown to seasonal weakness and reduced the discretionary spending on digital transformation projects by world clients. It is said: “We expect IT services businesses within our coverage during 4QFY25 over the seasonal weakness and lower discretionary digital transformation.” It is also mentioned that Indian IT businesses, which earn a large part of their revenue from the US market, still face a challenging business environment as the US handles macro economic uncertainties. Just as the sector hoped for a recovery in discretionary technical spending, the report said the situation became more complicated because of the fresh tariff announcements by the Trump-led administration, recessionary problems and a cut in IT budgets by Elon Musk-led Dog. These developments cause delays in large -scale technical transformation projects. Instead, customers are now focusing on cost-saving measures, including the consolidation of the seller and the budget re-tune, which affects the new project flow and revenue visibility for IT firms. The report expects the Indian IT businesses with a large cap to place an income decline of 0 to 2 percent in dollar terms. Among the most important players, Tata Consultancy Services (TCS) is likely to see revenue pressure as a result of an exit in his agreement with Bharat Sanchar Nigam Ltd (BSNL). Infosys and HCl Technologies may experience a decline in revenue due to seasonal factors, while from Wipro, Tech Mahindra and Sonata software is expected to report poorer results due to company-specific challenges. Despite the pressure on revenue, EBIT (earnings before interest and tax) is expected to remain largely stable over companies. However, the margins for infosys and HCL technology can be slightly affected as a result of seasonality and wage increases. In general, the prospects for the IT sector remain cautious, as companies have a quarter of the soft demand, tightening of the customer budget and global economic uncertainties. (Ani)