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The Bengaluru-headquartered firm, once the bellwether of the Indian IT industry, topped the list of companies which saw the most downgrades over the past year.
“Demand supply is not against the IT companies and so margins will be protected. Demand continues to be softer and unless we see significant pickup in order wins in fiscal year FY 2025. But probably in the next couple of quarters, demand is expected to be weak, which will weigh on the valuations of most of the larger IT companies as we speak.”
IT companies are slowing down hiring to improve margins and honour last year’s offers amidst an uncertain demand environment.
After remaining net sellers from April to June, FIIs have poured in Rs 7,101 crore from July till September 15, at a time when management commentary and guidance from IT majors painted a stark picture for the sector, show NSDL data.
“FII money may get impacted in the short run. In the long run, I do not see any impact on the medium to long run and FDI, which is where India is doing very well from Make in India, from people like Apple coming to India and other companies getting ready to come in India. If anything, after the short term turbulence, our country comes out as one of the best winners across the globe.”