Sandip Agarwal of Edelweiss Securities, on Monday, said that industry-led attrition is a good problem to have for the IT sector.
Edelweiss has upgraded a multitude of IT stocks for the seventh time in the past 18 months. They have been calling it the best tech cycle ever and now they are expecting the industry revenue growth to be about 18-20 percent over the next three years.
“IT industry lead attrition where demand is very substantial, there is a shortage of skills and because of which salary hikes and other things are happening. So the profit after tax (PAT) growth like past cycle will be much stronger and it will be much higher than the revenue growth,” Agarwal said in an interview to CNBC-TV18.
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“We are seeing an 18-20 percent revenue growth then the PAT growth cannot be less than 25 percent for 3-4 years. So, there will be a lot of surprises, which will keep on happening, in every quarter there will be upgrades which will continue like last six quarters and stocks will keep on going up,” he said.
For the entire interview, watch the video