TCS, Infosys to Wipro: What market expects from IT majors in Q3 results 2024?

livemint.com:

Q3 results 2024: Amid results season for the third quarter of the current financial year, four IT majors — Tata Consultancy Services (TCS), Infosys, HC Technologies, and Wipro are going to declare their respective Q3 results in the next two days. Out of these four IT majors, TCS and Infosys will be declaring their Q3 results today whereas HCL Technologies and Wipro are going to declare their third-quarter earnings tomorrow.

According to stock market experts, IT companies are expected to deliver muted numbers due to macroeconomic headwinds and looming recession fears. So, the focus will be largely on their guidance as they expect a better business outlook for Indian IT majors.

Speaking on the expectations from Indian IT companies' performance during the October to December 2023 quarter, Sonam Srivastava, Founder and Fund Manager at Wright Research said, "The Q3 results for the IT sector are anticipated to reflect a period of muted growth, largely due to global macroeconomic headwinds, and looming recession fears. But guidance is expected to be positive for the next quarter with North America and the UK showing promising pickup.

Revenue growth across the sector is expected to be flat or slightly positive, though some companies might experience a decline. Profit margins are likely to face pressure from factors like wage hikes, cost overruns, and currency fluctuations." On what she is expecting from Indian IT majors in this Q3 results season, Sonam Srivastava said, "Specifically, for major players like TCS, Infosys, Tech Mahindra, and Wipro, the outlook varies.

TCS has already reported a 3.2% YoY revenue growth and a 6.6% YoY profit growth in Q3, despite a slight decline in EBIT margins and a strong order book. Infosys, set