IT Slowdown: 2024 To Be A Repeat Of 2023, Coforge CEO Says

2024 is set to bring with it a sense of déjà vu for India’s IT services industry, as the veil of slowdown seen last year is unlikely to lift.

To be sure, Coforge wasn’t immune to the seasonality at play.

While the company has maintained its growth expectations for FY24, thanks to extreme furloughs, it expects the top line to come in at the lower end of the 13-16% range. The furloughs ate into the margins as well, about 40-50 basis points, but were offset by lower ESOP cost and higher gross margin. The management has indicated that client budgets are likely to remain flat in fiscal 2025.

On Tuesday, Coforge shares fell 1.24% to Rs 6,200.10 apiece on the BSE even as the benchmark Sensex ended the day 1.47% lower at 70,370.55 points.