Produced by: Aakanksha
Designed by: Mohsin Shaikh
The Indian Information Technology sector is ready to kickstart results season of India Inc from October 11. While projections for India Inc earnings are yet to be out, a few brokerages see the September quarter to be a muted one for IT firms
Tata Consultancy Services will begin the Q2 results cycle by announcing its numbers on October 11. JM Financial expects TCS to perform better than other Indian IT players, “We expect Infosys and TCS to be at the upper end.”
IT players like HCL Technologies and Infosys will announce their results on October 12. Jefferies noted in its report, “We expect Infosys (+1% QoQcc) to lead on growth.” On the other hand, JM Financial expects HCL to reduce its organic services/consolidated revenue growth guidance by 2 ppt to 4.5%-6.5% and 4%-6% respectively
TCS plans on paying a second interim dividend to its shareholders in Q2 for which record date has been fixed as October 19. Infosys also plans on paying interim dividend to its shareholders in Q2
Mid-cap IT firms like L&T Technology Services (LTTS) and Zensar Technologies are scheduled to release their quarterly earnings on October 17. Nomura noted in its report that Zensar is expected to lag, just like other mid-cap IT firms
On October 18, Wipro, Persistent Systems, and LTI Mindtree would be reporting their September quarter results. JM Financials said, “We expect Wipro to guide for a 0-2% cc QoQ growth for 3Q.” Furthermore, growth at LTIM would be soft at 1% QoQ cc, Jefferies said
Mid-cap IT players like Mphasis, Cyient, and Coforge are scheduled to disclose earnings on October 19. “Among mid-sized firms, we expect Coforge to lead with 2.5% QoQ cc growth, while growth at LTIM would be soft at 1% QoQcc," Jefferies said
Tech Mahindra will announce its results on October 21. JM Financials explained, “Tech Mahindra is still impacted by project ramp-downs towards 1Q-end, to be at the bottom end of the band.”
Within the IT pack, Jefferies has 'Buy' ratings only on Infosys and Coforge. Nomura is bullish on Tech Mahindra, Coforge and Birlasoft
Brokerages expect the IT sector to post tepid results in the Q2 FY24. This is due to headwinds in the sector caused by the broader macroeconomic slowdown.
JM Financials explained, "Q2 would be nowhere close to what most players envisaged at year-beginning. Hopes of finding a bottom in 1H has not materialised, we believe, as project ramp downs/cancellations continue.”
Last month, IT services firm Accenture forecast full-year earnings and first-quarter revenue below Wall Street targets. The prospect of higher-for-longer borrowing rates is forcing businesses to rethink their digitisation plans and technology budgets, hurting companies like Accenture that offer IT services ranging from strategy consulting to cloud migration