Capgemini projects slower revenue growth in 2024

Bengaluru, 14 February: French IT services & consulting major Capgemini on Wednesday forecast slower revenue growth for 2024, owing to a soft demand environment in the first half of the year.

The Paris-based firm also said it sees demand remaining subdued in the first quarter with a ‘gradual’ recovery from the second quarter onwards.

“The Group is well-equipped to improve its performance in 2024, while the environment is expected to remain soft in the first half. This year again, the Group expects to grow, with the trough in Q1, improve its operating margin and maintain a superior free cash flow conversion,” the company said in a press release.

In the post earnings call, CEO of Capgemini, Aiman Ezzat said the company is hopeful of a slightly faster rebounds in the second half of the year in sectors such as financial services.

The company expects its full year revenue to remain flat or grow by 3 per cent in constant currency terms. The company posted a revenue growth of 4.4 per cent in 2023. It also projected the operating profit margin to be in the range of 13.3 per cent to 13.6 per cent this year. Margin stood at 13.3 per cent last year.

Capgemini's full-year revenue rose 4.4 per cent to 22.52 billion euros ($24.13 billion), which was near the lower end of its projected 4-7 per cent growth. The group's headcount stood at 340,400 workers at the end of December quarter, a fall of 5 per cent from a year earlier.

While the onshore workforce decreased slightly to 145,800 employees, down by 2 per cent year-on-year, its offshore workforce was down by 7 per cent to 194,600 employees, the company said.