Rate cut uncertainty, escalating tariff wars to delay Indian IT sector recovery: Report
1 month, 1 week ago

Rate cut uncertainty, escalating tariff wars to delay Indian IT sector recovery: Report

Live Mint  

New Delhi, February 16 : Uncertainties surrounding rate cuts and the escalation of tariff wars will influence the sentiments in the near term and prolong the information technology sector recovery, said a report by Mirae Asset Sharekhan. The report added that management commentaries reflect a gradually improving macro environment with green shoots emerging in discretionary spending, especially in Banking, Financial Services, and Insurance, while the deal pipeline remains strong. As per the report, in terms of revenue trends, Tier-1 IT companies reported constant currency revenue growth of 0-3.8 percent quarter on quarter, impacted by seasonality and furloughs. Most Tier-1 IT companies saw EBIT margin rise sequentially, largely aided by operating efficiencies from margin improvement programs despite wage hike impact taken by some, the report said.

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History of this topic

Unsettling signs emerge for IT investors
1 week, 2 days ago

Unsettling signs emerge for IT investors

Live Mint  

At the start of 2025, the Indian information technology sector was poised to see a reversal of fortunes during the year. Robust US economic growth and interest rate cuts by the US Federal Reserve were seen as likely drivers, giving the sluggish client expenditure in the key banking and healthcare segments an impetus. Secondly, the ambiguity around trade tariffs means …

IT stocks lose steam amid Fed rate cut uncertainty, trade risks; Coforge and 6 other stocks fall up to 23% from peaks
1 month, 1 week ago

IT stocks lose steam amid Fed rate cut uncertainty, trade risks; Coforge and 6 other stocks fall up to 23% from peaks

Live Mint  

The Nifty IT Index has continued to outperform the broader Nifty 50 index over the past year. This surge was fueled by the U.S. Federal Reserve's consecutive rate cuts, which boosted investor sentiment as lower interest rates were expected to drive higher IT spending in the U.S. Additionally, Donald Trump's victory in the U.S. presidential elections further supported the rally. …

IT: Forget Q3 results, focus on commentary
2 months, 2 weeks ago

IT: Forget Q3 results, focus on commentary

Live Mint  

The December quarter is seasonally weak for the Indian IT sector due to furloughs and fewer working days. Even so, wide-held expectations are that year-on-year revenue growth will start gradually improving from Q3FY25 onwards, aided by lower project cancellations, the beginning of the US Federal Reserve's interest rate cut cycle, and the end of uncertainties surrounding the US election. “We …

IT sector prepares for Q3 results as tier 1 majors set for modest revenue growth
2 months, 3 weeks ago

IT sector prepares for Q3 results as tier 1 majors set for modest revenue growth

Hindustan Times  

As the quarterly results season begins next week, the Indian IT services sector is preparing for a mixed performance in the third quarter of FY25, a period traditionally considered weak due to seasonal furloughs, according to a report by Centrum. The report highlighted that Tier 1 IT companies like TCS, Infosys, and HCL Tech are expected to post modest growth …

IT Sector Q3 Results Preview: From revenue growth to margins, how TCS, Infosys, Wipro, other top IT firms may perform
2 months, 3 weeks ago

IT Sector Q3 Results Preview: From revenue growth to margins, how TCS, Infosys, Wipro, other top IT firms may perform

Live Mint  

IT Sector Q3 Results Preview: Tata Consultancy Services, Infosys, HCL Technologies, Wipro, among other Indian IT companies are set to commence the earnings season for the third quarter of FY25 next week. Here’s how top IT companies are expected to perform in Q3FY25: TCS Q3 Results Preview TCS, the largest IT services company in India, is expected to see a …

IT sector swings between hope and despair
3 months ago

IT sector swings between hope and despair

Live Mint  

Global IT giant Accenture’s Q1FY25 results surprised positively with constant currency revenue growth of 8% year-on-year, beating its 2-6% guidance. Growth was broad-based but led by the healthcare and public services vertical where Accenture has relatively higher exposure than tier-I Indian peers. “Accenture’s improving deal total contract value share indicates its growth, especially in Managed Services, might be coming at …

India's Q2 GDP slows to 5.4%, hits 18-month low on weak consumption
Trending News
3 months, 3 weeks ago

India's Q2 GDP slows to 5.4%, hits 18-month low on weak consumption

India Today  

India’s GDP growth for the July-September quarter fell sharply to 5.4%, marking an 18-month low, as per data released by the National Statistics Office on Friday. Manufacturing growth decelerated significantly to 2.2%, compared to 14.3% in the same quarter last year and 7% in the previous quarter. The weaker-than-expected GDP growth raises concerns about the sustainability of economic recovery, particularly …

TCS Q2 Results Today: Profit, Revenue Growth Likely To Be Muted; Know Key Things To Watch Out For
1 year, 5 months ago

TCS Q2 Results Today: Profit, Revenue Growth Likely To Be Muted; Know Key Things To Watch Out For

News 18  

TCS Q2 Results To Be Out Today: Tata Consultancy Services, India’s largest IT services provider, will on Wednesday kick-start the Q2 earnings season. Update: TCS Q2 Results: Net Profit Rises 8.7% YoY To Rs 11,342 Crore, Rs 9 Interim Dividend Declared Forecasting a single-digit growth, brokerage firm Kotak Instiutional Equities in its report said, “We forecast marginal revenue growth due …

TCS Q1FY24 results mixed: Brokerages highlight these concerns
1 year, 8 months ago

TCS Q1FY24 results mixed: Brokerages highlight these concerns

Live Mint  

The largest provider of information technology services, BSE-S0003051" data-name="Tata Consultancy Services">Tata Consultancy Services Ltd., experienced its weakest fiscal year start since becoming public in 2004. Prior to Q1FY24, Mint noted that TCS's worst growth at the beginning of the fiscal year occurred in the first quarter of 2008, when the global financial crisis caused bank instability and ultimately harmed IT …

Q1 Results: TCS, HCL Technologies, 5Paisa Capital, others to post earnings today
1 year, 8 months ago

Q1 Results: TCS, HCL Technologies, 5Paisa Capital, others to post earnings today

Live Mint  

The first quarter earnings for fiscal 2024 are scheduled to begin on Wednesday with two of the top Indian information technology companies, Tata Consultancy Services Ltd, and HCL Technologies Ltd. Anand Rathi Wealth Ltd, Steel Strips Wheels Ltd, 5Paisa Capital Ltd, Hathway Bhawani Cabletel & Datacom Ltd, and National Standard Ltd are some of the non-IT companies that will also …

TCS likely to see muted revenue growth in Q1FY24; EBIT margin may contract
1 year, 8 months ago

TCS likely to see muted revenue growth in Q1FY24; EBIT margin may contract

Live Mint  

Tata Consultancy Services, the largest software services exporter in India, will announce its earnings for the first quarter of FY24 on July 12. According to Emkay Global Financial Services, TCS may see 1.3% QoQ USD revenue growth factoring 30 bps cross-currency tailwinds. The brokerage house expects the company’s EBIT margin to decline by 100 bps QoQ due to wage hike, …

IT sector Q4 review: Mixed numbers, cautious outlook; what’s the road ahead?
1 year, 9 months ago

IT sector Q4 review: Mixed numbers, cautious outlook; what’s the road ahead?

Live Mint  

On expected lines, the January-March quarter numbers of Indian IT companies came on the softer side with signs of stress due to the economic slowdown in the key markets including the US and Europe. Mixed numbers As Mint reported earlier, both Infosys and TCS, which together comprise 11 per cent of the Nifty 50 index weightage, missed analysts' estimates in …

India Inc's Q3 Margins Increase Sequentially Despite Subdued Revenue Growth: ICRA
2 years ago

India Inc's Q3 Margins Increase Sequentially Despite Subdued Revenue Growth: ICRA

News 18  

India Inc’s operating profit margin expanded 180 basis points sequentially to 16.3 per cent q-o-q during the December 2023 quarter despite subdued sequential revenue growth of 1.4 per cent, according to an analysis by ratings agency ICRA. The report revealed expectedly positive revenue trends, with a YoY growth of 17.2 per cent, despite subdued sequential revenue growth of 1.4 per …

’Uncertain times ahead..’: Jefferies on Indian IT companies
2 years, 2 months ago

’Uncertain times ahead..’: Jefferies on Indian IT companies

Live Mint  

A sharp slowdown in net hiring, muted growth outlook in 4Q and a potentially slower conversion of bookings to revenues points to a sharp growth moderation for Indian IT firms, highlighted Jefferies in a note on Indian IT firms who sees ‘uncertain times ahead’ for the sector. “After the Q3 results so far, the brokerage house expects aggregate revenue for …

Amid slowdown & rising caution, will IT firms deliver another weak quarter?
2 years, 2 months ago

Amid slowdown & rising caution, will IT firms deliver another weak quarter?

Live Mint  

Indian IT stocks underperformed in 2022 amid warnings of a potential slowdown in business on global recession fears and earnings downgrades. The IT Services sector is expected to report moderate growth in Q3FY23, primarily on account of the seasonally weak quarter and slowing growth momentum led by uncertainties in the US and UK. The brokerage expects large caps to outperform …

India's Q2 GDP Data Today: Key Things To Watch Out For In Latest Economic Growth Numbers
2 years, 3 months ago

India's Q2 GDP Data Today: Key Things To Watch Out For In Latest Economic Growth Numbers

News 18  

India’s Q2FY23 GDP Growth: India’s GDP data for the July-September 2022 quarter will be released today at 5.30 pm. Analysts expect India’s gross domestic product to have grown in the range of 5.8 per cent and 7.2 per cent during the second quarter of 2022-23, which is lower than the previous quarter. Now, in the Q2FY23, manufacturing growth based on …

IT services firms likely to report strong revenue in Q1
2 years, 8 months ago

IT services firms likely to report strong revenue in Q1

Live Mint  

Top Indian IT services companies are expected to report strong revenue growth of 2.3-4.3% quarter-on-quarter in constant currency during the fiscal first quarter ended June, according to analysts. However, the peak revenue growth of these companies is likely to be behind them and the momentum is expected to start softening from H2 FY23 due to absence of large deal wins …

JPMorgan downgrades Indian IT sector but bullish on these 4 IT stocks
2 years, 9 months ago

JPMorgan downgrades Indian IT sector but bullish on these 4 IT stocks

Live Mint  

Since analysts at JPMorgan downgraded its Indian IT sector stance to underweight on 18 May, 2022, India IT performance has been volatile. Even as the global brokerage has remained underweight on the IT sector, it is overweight on only four Indian IT stocks which are Infosys, Mphasis, Tech Mahindra, Persistent Systems. Lastly, our analysis of management commentary this earnings season …

Indian IT Services Growth Set for Comeback in 2021, Pandemic to Fuel Digital Spends: Fitch Ratings
4 years, 5 months ago

Indian IT Services Growth Set for Comeback in 2021, Pandemic to Fuel Digital Spends: Fitch Ratings

News 18  

The Indian IT services sector is expected to return to high single-digit revenue growth in 2021-2022 galvanised by higher demand for digital transformation after a flattish 2020, according to Fitch Ratings. In a new report titled ‘Spotlight: Indian IT Services Sector’, Fitch said the impact of the coronavirus pandemic is seen to be only moderate and short term, as customers …

India’s economy grew in Q1, but deep slump is expected
4 years, 9 months ago

India’s economy grew in Q1, but deep slump is expected

Al Jazeera  

Though Q1 GDP topped estimates, coronavirus lockdowns have economists betting that negative growth is on the cards. India’s economy grew at a faster pace than economists expected last quarter with a deeper slump likely to come after the nation of 1.3 billion people went into lockdown to contain the coronavirus outbreak. The strict stay-at-home restrictions imposed late March brought India’s …

IT firms may report muted Q3 growth
5 years, 2 months ago

IT firms may report muted Q3 growth

The Hindu  

Indian information technology firms are likely to start new year with a muted growth, when they announce their third quarter results following to a seasonally-weak quarter and continued challenges in the the banking, financial services and insurance and retail verticals. Tata Consultancy Services, Infosys, HCL Technologies, Wipro and Tech Mahindra are likely to report a tepid revenue growth in constant …

Increase in onsite hiring led to margin pressure for IT sector in Q1FY20: Icra
5 years, 6 months ago

Increase in onsite hiring led to margin pressure for IT sector in Q1FY20: Icra

Live Mint  

New Delhi: Credit rating agency Icra said that the margin contraction for Indian IT services industry in June quarter was largely owing to higher onsite hiring and sub-contracting costs. The cap on fresh H-1B visa for the US market has remained stagnant since 2014 coupled with 10% lesser issuances of overall H-1B visa during October-September 2018 period owing to tighter …

Indian IT may be benefiting from Cognizant’s woes, but gains can be fleeting
5 years, 7 months ago

Indian IT may be benefiting from Cognizant’s woes, but gains can be fleeting

Live Mint  

Company-specific troubles at IT services firm Cognizant Technology Solutions Corp. may be helping the competition gain market share, but the weak demand trends reflected in its key business verticals also point to an industry-wide problem. Cognizant pruned the higher end of its 2019 revenue growth guidance in constant currency terms from 3.6-5.1% in May to 3.9-4.9% now. The only important …

Indian IT services cos expected to grow at 9-12% CAGR during FY18-21: ICRA
6 years, 2 months ago

Indian IT services cos expected to grow at 9-12% CAGR during FY18-21: ICRA

Live Mint  

New Delhi: Indian IT services companies are expected to grow at a compounded annual growth rate of 9-12% between FY2018-21, impacted by lower deal sizes in digital technologies, cloud adoption and high competitive intensity, according to ratings agency ICRA. The credit profile of Indian IT services companies remains stable, underpinned by the ability to sustain free cash flows despite pressure …

Challenges lurk for Indian IT companies before growth acceleration
6 years, 3 months ago

Challenges lurk for Indian IT companies before growth acceleration

Live Mint  

Despite the recent correction, information technology stocks have done exceptionally well this year. For a few companies such as Tata Consultancy Services Ltd, growth has picked up meaningfully this year, while others have talked about robust order wins, implying acceleration in revenue growth rates in the future. Even though the growth acceleration theme is yet to play out at an …

Low base drives up Corporate India's Q1 revenues 17% on y-o-y basis; consumer-oriented sectors do well, says Icra
6 years, 6 months ago

Low base drives up Corporate India's Q1 revenues 17% on y-o-y basis; consumer-oriented sectors do well, says Icra

Firstpost  

“Indian corporate sector’s aggregate revenues have grown by 17.1 percent during the first quarter, on a year-on-year basis, Mumbai: India Inc reported a 17.1 percent growth in revenues for the June quarter on a lower base in the year-ago period, a report said Thursday. “Indian corporate sector’s aggregate revenues have grown by 17.1 percent during the first quarter, on a …

Where are the signs of recovery in Indian IT industry?
6 years, 10 months ago

Where are the signs of recovery in Indian IT industry?

Live Mint  

Mumbai/Bengaluru: A less-than bullish commentary by managements of Infosys Ltd, Wipro Ltd and HCL Technologies Ltd, and fewer analyst recommendations for buying their shares, have made many wonder if the current financial year will be better for the industry than the last one. Since the start of the year until 12 April, a day before Infosys declared earnings, TCS shares …

Where are the signs of recovery in Indian IT industry?
6 years, 10 months ago

Where are the signs of recovery in Indian IT industry?

Live Mint  

Mumbai/Bengaluru: A less-than bullish commentary by managements of Infosys Ltd, Wipro Ltd and HCL Technologies Ltd, and fewer analyst recommendations for buying their shares, have made many wonder if the current financial year will be better for the industry than the last one. Since the start of the year until 12 April, a day before Infosys declared earnings, TCS shares …

India Inc's Q2 profit growth to slip: Goldman Sachs
13 years, 5 months ago

India Inc's Q2 profit growth to slip: Goldman Sachs

Firstpost  

In a recent research report, Goldman Sachs said it expected growth in revenues to decelerate to 19 percent in the September-ending quarter because of a slowdown in domestic demand, from 25 percent the previous quarter. However, from the previous quarter, net profit is expected to be stronger due to seasonal gains and grow by 24 percent due to a sharp …

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