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Performance Analysis of Select Publicly Listed Technology Companies - Q2FY24
Performance Analysis of Select Publicly Listed Technology Companies - Q2FY24

February 21, 2024

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In Q2FY24, the top listed Indian tech companies announced a combined deal pipeline exceeding US$27 Bn compared to US$20.4 Bn an increase of 32% q-o-q. The increase in deal pipeline was attributed to a growing proportion of cost-optimization deals, but continues to face delayed decision-making cycles, affecting the conversion of the pipeline into billable clients. Revenues for the select set of public listed companies grew 0.3% q-o-q , and 2.8% y-o-y in reported currency.

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Geographies - North America (+0.7%) and India (+2.6%) recorded sustained growth sequentially, while EMEA (-0.1%) and the Rest of the World (-0.7%) experienced a q-o-q decline.

Verticals - Sequential revenue growth for Healthcare (+3.6%), Retail (+1.5%), Transportation, Travel and Hospitality (+1.4%) and Manufacturing (+0.9%) verticals was witnessed. While Telecom (-1.0%) and BFSI (-0.1%) saw a decline in the quarter.

Net hiring and Attrition Employee base declined by 0.23% q-o-q in Q2FY24 even as companies focused on improving current utilization levels, which increased by 120 basis points since Q1FY23. Attrition continued its downward trend – 13.4% compared to 15.3% in Q1FY24.

 

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Industry Segments

  • Pure-Play ER&D - Sustained revenue growth (+4.4% q-o-q) was credited to the continued focus on digital engineering, especially in the domain of Aerospace & Defence and Software Defined Vehicles (SDVs), autonomous driving and digital connected solutions. Among regions, Europe, and sectors like Transportation, Industrial products and EMU (Energy, Mining, and Utility) were the key growth drivers.
  • Pure-Play BPM - Revenues grew at 1.1% q-o-q, while net hiring increased 3.8% sequentially. Pure-play BPM companies increased focus on AI training and certifications to ensure an AI ready workforce.

Start-up Trends - Revenues grew by 9.9% q-o-q and 35.4% y-o-y. New Age Listed firms continue to lower losses with enhanced operational effectiveness.

 

Source: https://nasscom.in/knowledge-center/publications/quarterly-industry-review-november-2023


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Prajwal Pandey
Research Analyst

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