IT cos to see muted first qtr: Brokerages

BENGALURU: Indian IT services companies will report modest numbers in the upcoming results season, say brokerages.

Weaker discretionary spending, delays in decision-making, and weakness in sectors like mortgage, retail & telecom are expected to keep revenues down in the April-June quarter of FY24. HDFC Securities estimates IT sector growth will moderate to 5% in FY24 before recovering to 9% in FY25.

Accenture’s Q3 (March-May) revenue growth was a mere 5% in constant currency. The IT services company said that its revenue was impacted because of lower-than-expected small deals. The firm has lowered the top-end of the revenue guidance for the full year from 10% to 9%. This will be a sharp drop from the 26% growth in FY22.