IT industry has projected a 12-14 per cent growth in the year till March 2014. A Mint report tries to analyse whether the industry will be able to sustain the growth in the next fiscal year. According to a recent report by JP Morgan Research, “Available indicators at this point in time suggest that 2014 will likely be a year of consolidation, with a decent probability of a mild pick-up relative to 2013 (though we may not see a marked growth pick-up in 2014 versus 2013). We see industry growth for FY15 at 13-15%.” The report further says that stock returns are not expected to be spectacular, especially given where valuations are already. Referring to TCS, it said that while reported earnings growth has been much higher lately, that’s largely because of the sharp depreciation in the rupee this year. Adjusted for currency benefits, growth rates are much lower.
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