3-5% growth forecast for IT sector in FY24

New Delhi The Indian IT industry is expected to see moderate revenue growth of 3-5 per cent in FY24, lower than 9.2 per cent (year-on-year) growth in FY23, a new report said on Tuesday. According to credit rating agency ICRA, key sectors like BFSI, retail, technology, and communication are expected to slow down discretionary IT spending. The operating profit margin is expected to decline by 70-100 bps in FY2024 due to lower operating leverage.

“The operating profit margin (OPM) for the sample set is expected to decline by 70-100 bps in FY2024, due to lower operating leverage. Nevertheless, it will remain healthy at 20-21 per cent in FY2024, owing to the ability of most companies to work with multiple levers such as onshore-offshore mix, employee utilisation levels, employee pyramid optimisation, among others, to manage costs,” said Deepak Jotwani, assistant vice-president & sector head, ICRA.