IT stocks gained in trade on the back of mild weakness in rupee. Hitesh Oberoi, MD and CEO of Info Edge, shared his views and outlook on the sector.
“IT and ITES companies account for about 40-45 percent of our business and in fact most hiring in markets like Bangalore, Chennai, Hyderabad, and Pune is IT hiring. Last year we saw big slowdown in IT because there was a lot of noise around automation, AI, IT jobs being under threat and so on and so forth, so last year was a bad year but this year – the first three quarters and even the months of January and February have been very good for IT companies. Maybe there is slowdown hiring last year and they are bouncing back this year but this year for us has so far been very good as far as IT hiring is concerned,” Oberoi told CNBC-TV18 on Thursday.
Talking about the monthly hiring trends, Oberoi said, “Firstly, let us not read too much into data for a month. What we should be looking at are long-term trends and what has been happening over the last few months. In general, we have seen a pick-up in services hiring this year and banking, financial services and insurance (BFSI) led a lot of that for the first few months of the quarter of the year. It has seen a slight slowdown in the last couple of months, I don’t know what the reason is but maybe it is because of the IL&FS impact or maybe something else. As far as the auto is concerned, we should look at long-term trends. Let us not read too much into just the data for February.”
Speaking about growth in Naukri, Oberoi said, “Two things impact our growth, one is how the domestic economy is doing because that impacts non-IT hiring which is about 60 percent of our business and then how the global markets are doing because that impacts to some extent, IT hiring and that is about 40-45 percent of our business. So this year, on the whole, has been good for both non-IT and IT, which is why you have seen more than 20 percent growth till now. If the domestic economy continues to do well and if IT companies continue to hire, we should be able to clock this kind of growth rates going forward as well but a lot will depend on what happens.”