Moody’s Affirms Tata Consultancy Services and Infosys Ratings, Expects Revenue Growth to Moderate
Moody’s Investors Service has affirmed the ratings of two major Indian IT services companies, Infosys and Tata Consultancy Services Limited (TCS). In separate statements, Moody’s also retained stable outlooks for both companies.
Moody’s expects Infosys’ revenues to climb by around 13% for the fiscal year ending March 31, 2023. However, growth is expected to moderate to around 8% in fiscal 2024. Meanwhile, TCS’ revenues are expected to climb by around 8% for the fiscal year ending March 31, 2023. But growth is expected to slow to around 5% in fiscal years 2024 and 2025.
According to Moody’s Senior Vice President Kaustubh Chaubal, Infosys’ strong profitability and robust credit profile are due to its position as one of the world’s leading information technology (IT) solutions and services providers with globally diversified, cost-competitive operations. The company’s good corporate governance practices, reflected in its extremely strong balance sheet, large liquidity, and net cash position, support its Baa1 rating.
Despite potential slowdowns in revenue growth due to global uncertainties and fears of a looming recession, leading IT companies such as Infosys and TCS are still attractive opportunities for corporations focused on cost optimization and streamlining vendors. Moody’s believes that digital transformation trends, combined with increasingly complex businesses, will provide ample opportunities for these companies to leverage their wide product suites and capabilities.
In conclusion, Moody’s Investors Service affirms that the robust credit profiles of Infosys and TCS are supported by their strong corporate governance practices and sustained, successful operational track records.
For More Latest News Click Here
