Outlook positive for IT cos, challenges persist

The first quarter results (Q1FY25) of Indian IT services hint towards better fiscal growth than the preceding year, but as the management commentary said, "there is still some time for the industry to be firing on all cylinders.

- SHIVANI SHINDE

" Among the majors-Tata Consultancy Services (TCS), Infosys, HCLTech, and Wipro-it is the Bengaluru-based Infosys that has performed better, which was also evident in its full-year revenue guidance.

The impact of the results of the top player was evident on the Sensex as well. Benchmark indices notched up new record highs on July 18, with the benchmark Nifty nearing the 25,000 mark, boosted by a rally in information technology (IT) stocks on earnings optimism.

TCS, Infosys and HCLTech managed to beat estimates, Wipro's number missed Street estimates, especially on revenue growth.

Infosys revised its full-year guidance in the range of 3 to 4 per cent from its earlier 1 per cent to 3 per cent.

This revised guidance also includes an inorganic strategy. Infosys also showed an improvement in revenue, profits, and margins.

Even though the top players have indicated some way that they can see green shoots, they have in the similar tone also said it is still too early to call out if the growth seen in Q1FY25 can be sustained for the full year.