Demand slowdown to weigh on IT services firms' Q1 show

Analysts forecast revenues of most companies to either stay flat or decline in Q1 of FY24

- Shouvik Das

India’s information technology (IT) services industry is expected to deliver a weak performance in the June quarter, influenced by factors such as sluggish economies and tepid global tech spending.

Industry analysts and brokerages have forecast revenues of most companies to either stay flat or decline in the first quarter of FY24.

In a note to investors on 29 June, ICICI Securities projected Tata Consultancy Services (TCS), the country’s top IT services company, to post a dollar revenue increase of 0.2% in constant currency on a sequential basis. Infosys, the second-largest, is projected to grow 0.8%. While HCL Technologies’ revenue is forecast to remain flat, Wipro and Tech Mahindra’s quarterly revenues are projected to fall 1.6% and 2.4%, respectively.

TCS and HCL will kick off the June quarter earnings season on 12 July. Wipro is set to declare its results on 13 July, while Infosys will announce its earnings on 20 July.