Mid-size IT services provider Sonata Software on Wednesday said it expects revenue growth in the high teens for the information technology (IT) services business after it posted a 59 percent jump in consolidated net profit at Rs 91.17 crore in the second quarter ended.
In an interview with CNBC-TV18, Jagannathan Chakravarthi, the chief financial officer, said he expects very strong growth for the next 2-3 years in the IT services business.
Midcap IT cos to see sustainable growth; prefer L&T Tech, Persistent Systems, Mphasis: Elara Capital
He said, "Demand is not an issue at all in the IT services business. We see this as a medium-term demand scenario for the entire IT industry. We are going to have very strong growth for the next maybe 2 or 3 years. Growth in this business depends on how we are able to execute and how we are able to meet the supply side demand. But we are confident of meeting the kind of growth that we have reported now. So, we are very confident of meeting the guidance for the whole year."
Expect domestic business to grow strongly for the year as a whole, Chakravarthi said.
Also Read: International business pipeline and demand very strong, can scale up to $50 million/quarter, says Sonata Software
"For our domestic business, don's measure the business on revenue because that depends on the contract that comes up for renewal. Domestic business should be measured on the absolute gross contribution. The absolute gross contribution has grown about 5 percent quarter on quarter (QoQ) and about 15 percent year-on-year (YoY) basis. For the whole year, we expect growth coming in this business," he added.
Watch the video for more.