This is what analysts expect from IT companies’ results for 2019’s first quarter

Profit margins at IT companies are likely to remain under pressure in the June quarter on a sequential basis due to higher wage costs, adverse forex movements and visa expenses. Brokerages expect 20-340 bps year-on-year decline in earnings before interest and tax (EBIT) for tier-1 IT companies.
Localisation and investments in digital capabilities would also hold down profitability. Concerns over slowing global growth and strengthening of the rupee are likely to weigh on IT stock performance and analysts expect moderate stock returns, in the near term.
“We expect EBIT margins across the top-tier to shrink by 50-160 bps, with contractions particularly pronounced at TCS, Infosys and Tech Mahindra” said Ashish Chopra, research analyst, Motilal Oswal Financial Services. “The situation is no different for tier-II, where barring Mphasis, Hexaware and Zen Technologies, we expect margins to contract by over 100 bps.”