Has Eureka Forbes’ AMC price hike backfired? Analysts question renewal deferrals, service-growth maths

Eureka Forbes has raised its Annual Maintenance Contract (AMC) prices by 3-12%, but this move seems to have had an unintended consequence. Customers are now delaying their contract renewals, which could impact the company's service revenue growth. This development is significant for markets as it suggests that consumers may be sensitive to price increases, even if they are moderate, and could potentially affect the company's future earnings and overall market performance.

Why it matters

The price hike has led to a decline in customer renewals. This could affect the company's revenue and growth prospects.

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