For IT firms, June quarter may be softer than Q4

Analysts expect a softer June quarter for many IT companies compared to even the modest March quarter. Discretionary spending by clients in some verticals like banking and financial services and communications is still low, and the broad-based slowdown continues.

“Except Infosys, the June quarter could be weaker than the March quarter for many companies. We attribute the weakness to project pauses and cancellations in North America and select verticals such as banking and communications. The pause and cancellations materialised in February and accelerated in March.