Q2 results review: Major players report soft earnings; what's the road ahead for IT sector?

livemint.com:

Wipro have reported subdued earnings for the July-September quarter (Q2) due to the impact of ongoing macroeconomic uncertainties, which have resulted in reduced discretionary spending in critical markets. The near-future prospects also seem unfavourable, as the US Federal Reserve is committed to reducing inflation to its 2 per cent target. To achieve this, the central bank is expected to maintain high-interest rates for an extended duration and may even implement further rate hikes, which could place additional pressure on the economy.

TCS reported a rise of 8.7 per cent in consolidated net profit at ₹11,342 crore in the September quarter, compared to ₹10,431 crore in the corresponding period last year. India's second-largest IT major Infosys' net profit rose 3.17 per cent to ₹6,212 crore, compared to ₹6,012 crore in the corresponding period last year. The Bengaluru-based company trimmed its revenue growth guidance for the full year at the upper end to 1-2.5 per cent.

HCL Tech reported a rise of 9.8 per cent in its consolidated net profit at ₹3,832 crore, compared to ₹3,489 crore in the corresponding period last year. Wipro reported a consolidated net profit of ₹2,667.3 crore in the July-September quarter, compared to ₹2,649 crore in the year-ago period. Wipro's quarterly dollar revenue fell 2.3 per cent sequentially in the September quarter, marking the third straight such decline for the fourth-largest Indian IT services firm.