IT firms may see revival, rebound in growth this results season: Analysts

Mumbai: India’s IT services firms are expected to report better numbers in the quarter to September, demonstrating the optimism they shared earlier of increased technology spending by global clients to deal with the Covid-19 pandemic induced economic crisis.

The virus outbreak hampered profit and revenue growth at the software services exporters in the previous quarter, but improvement in demand for technology services and a strong order book will be reflected in the results for companies including Infosys, TCS, HCL Technologies, Wipro and Mphasis, analysts said.

“The IT sector is expected to bounce back to over 3.2% quarter-on-quarter (revenue growth) in the second quarter following a 6% decline in the first quarter…Growth is backed by strong deal flow, improvement in execution,” said Apruva Prasad and Amit Chandra, technology analysts at HDFC Securities, in a note.