Page 11 - Indian It Sector
Odisha tables revenue surplus budget with total outgo pegged at Rs 1.5 trn
Budget estimates fiscal deficit to be at 3.4%, within permissible limit of FRBM target
 "Odisha tables revenue surplus budget with total outgo pegged at Rs 1.5 trn")
IT stocks drop as brokerages raise concerns; Nifty IT index falls 2%
IT stocks currently trade at a 7 per cent discount to Nifty
 "IT stocks drop as brokerages raise concerns; Nifty IT index falls 2%")
Mid-sized IT firms disappoint in Sep quarter; L&T Infotech an exception
Barring hi-tech, media and BFS, all other segments demonstrated strong growth for it
 "Mid-sized IT firms disappoint in Sep quarter; L&T Infotech an exception")
Slowdown blues: Demand worries likely to dim IT firms' growth outlook
Besides slow growth in BFSI and retail verticals, deal conversion is taking time and may impact revenues and stock valuations
Indian IT firms' margins under pressure as H1B visa rejections increase
Latest data from US Citizenship and Immigration Services (USCIS) shows rejection rates for H1B visa petitions has touched a high under the Donald Trump administration
 "Indian IT firms' margins under pressure as H1B visa rejections increase")
Top 10 biz headlines: Truck sales fall 60%, GST cut for hybrid cars & more
From sales of medium and heavy commercial vehicles falling by over half in Aug to the GST Council considering a breather for hybrid vehicles in its upcoming meeting, here is today's top business news
 "Top 10 biz headlines: Truck sales fall 60%, GST cut for hybrid cars & more")
Restrictions hurting our operations in China, IT industry tells Goyal
Despite the Chinese IT services market remaining the third largest globally, investments by the Indian industry have not been able to grow owing to unique challenges faced while setting up shop
 "Restrictions hurting our operations in China, IT industry tells Goyal")
Decline in global client spending may put Indian IT sector under stress
Though global IT services spending is likely to cross the $1-trillion mark to reach $1.031 trillion, growth rate will slow to 3.8% in 2019, compared to 6.7% last year according to reports
 "Decline in global client spending may put Indian IT sector under stress")
Analysts see robust demand, margin squeeze for IT firms; prefer large-caps
Data wise, top five Tier-1 IT companies reported revenue growth in the range of 1.8-5.6 per cent on sequential basis and 7-13 per cent year-on-year (y-o-y) on constant currency (CC) basis.
 "Analysts see robust demand, margin squeeze for IT firms; prefer large-caps")
2019 a growth year for Indian IT firms: Tech Mahindra MD Gurnani at Davos
'Technology is at the core of everything we do, be it solving the skill problem or sustainability issues,' Gurnani said
 "2019 a growth year for Indian IT firms: Tech Mahindra MD Gurnani at Davos")
Slowing spends cast shadow on India's IT services industry, says Gartner
IT services market globally to cross $1 trillion in 2019, but growth rate to slow to 4.7%, says Gartner
 "Slowing spends cast shadow on India's IT services industry, says Gartner")
Tighter controls on visas can't be complete showstopper for IT: Nasscom
Indian IT companies are seeking to overcome the visa-related challenges by setting up new centres in the US
 "Tighter controls on visas can't be complete showstopper for IT: Nasscom")
Why Indian IT will see little impact due to Trump's new tax act
The benefits of moving work offshore to low-cost locations such as India outweigh the additional costs.
 "Why Indian IT will see little impact due to Trump's new tax act")
Govt initiating programmes under Digital India for IT sector growth: Prasad
Steps are being taken for re-skilling and up-skilling of IT workforce in new and emerging IT technologies
 "Govt initiating programmes under Digital India for IT sector growth: Prasad")
IT margins to remain under stress till 2020 as competition is high: Icra
Price led competition and chasing limited new opportunities will impact business
 "IT margins to remain under stress till 2020 as competition is high: Icra")
Chinese internet and Indian IT
There is no time for complacency, as large tech firms are India's only hope of getting a toehold in new fields
 "Chinese internet and Indian IT")
Indian IT sector sees new growth drivers in mid-tier firms
The information technology (IT) services sector is seeing emerging growth leaders among midsize companies, such as L&T Infotech, Hexaware Technologies and Cyient. These, say analysts, are among those reporting higher growth than larger peers. Large companies such as Tata Consultancy Services (TCS), Infosys, Wipro and HCL have seen mid to high single-digit growth in the past few quarters; these mid-tier IT service providers have seen double-digit growth. Buoyed by this strong growth in the first two quarters of this financial year, Hexaware has raised its dollar revenue growth expectation to 14-15 per cent for 2017, from the earlier 10-12 per cent. L&T Infotech, largest in size among the mid-tiers with $1.1 billion revenue, reported steady growth in the September quarter at $270.6 million, on higher on-shore and off-shore volume. Infosys has revised downward its growth forecast for 2017-18 by 200 basis points; Wipro has maintained a cautious quarterly forecast. Industry lobby ..