Q1FY25 (Apr-Jun 2024) Revenue and Growth Rates of Indian Engineering Service Providers

The performance of Indian engineering service providers has been mixed this quarter. It deteriorated from the last quarter with QoQ growth rates in negative territory. Seasonality, industry-specific and client-specific issues are pulling down the growth rates of many service providers.

The first quarter of FY25 presented a mixed performance for Indian Engineering Services Providers (ESPs). Below is a summary of their revenue growth:

The first quarter of FY25 presented a mixed performance for Indian Engineering Services Providers (ESPs). Below is a summary of their revenue growth:

Revenue Performance (in USD):

KPIT:

Revenue: $165 million

Quarter-on-Quarter (QoQ) Growth: 3.7%

Year-on-Year (YoY) Growth: 23.1%

Persistent:

Revenue: $328 million

QoQ Growth: 5.6%

YoY Growth: 16.0%

HCL Tech ERS:

Revenue: $535 million

QoQ Growth: -3.7%

YoY Growth: 8.5%

Tata Elxsi:

Revenue: $111 million

QoQ Growth: 2.4%

YoY Growth: 7.4%

LTTS:

Revenue: $295 million

QoQ Growth: -3.3%

YoY Growth: 5.4%

Tata Technologies:

Revenue: $152 million

QoQ Growth: -2.9%

YoY Growth: -0.7%

Cyient DET:

Revenue: $170 million

QoQ Growth: -5.4%

YoY Growth: -4.2%

Overall Analysis:

Weighted Average Growth:

QoQ Growth: -1.1%

YoY Growth: 8.2%

This data shows that while some companies like KPIT and Persistent demonstrated strong YoY growth, others such as Cyient DET and Tata Technologies faced declines. Overall, the industry experienced a slight decline in QoQ growth but maintained a positive YoY growth, indicating underlying resilience despite quarterly fluctuations.