Margin pressure to stay; firms' focus on outlook
Business Standard|July 04, 2022
Q1 RESULTS PREVIEW: IT SERVICES
SHIVANI SHINDE
Margin pressure to stay; firms' focus on outlook

A mid concerns of a likely recession in the US and Europe and rising inflation worldwide, the first-quarter results of FY23 in the Indian IT services industry will be keenly watched for management commentary on the demand outlook. With supply-side challenges yet to settle down, margins will be under pressure due to higher retention costs, and travel. However, the silver lining could be a falling rupee.

Indian IT services results will start coming in from July 8, with Tata Consultancy Services (TCS) being the first company to announce its numbers. Infosys will be the last among the top four companies to share its results on July 24.

Analysts tracking the sector said in their current commentaries, company managements of both top-tier and mid-cap IT services firms have reiterated the robust demand environment due to cloud and digital transformation. However, many analysts now believe that the first signs of any shift in demand will be evident in Q1 FY23.

This story is from the July 04, 2022 edition of Business Standard.

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This story is from the July 04, 2022 edition of Business Standard.

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