IT sector Q3 preview: Best Q3 in a decade, guidance upgrades & more

NEW DELHI: Earnings season for the IT sector is all set to kick start this week with TCS NSE 0.32 % results on Friday. Some analysts believe this quarter’s growth could be the best third quarter growth growth for IT players in a decade, with highest-ever order books, marked revenue acceleration and guidance upgrades.

Margins could be impacted a bit due to wage hikes, they said.

Among big players, Infosys NSE 0.48 % and HCL Tech could raise revenue and margin guidance. In case of TCS, eyes would be on whether its revenue in rupee terms recover to pre-pandemic levels as indicated by the management earlier. Wipro’s commentary under new CEO Thierry Delaporte would be keenly watched. Delaporte had announced a slew of measures to bring Wipro’s growth back on track. In case of Tech Mahindra NSE 1.83 %, the first half of FY21 was not-so-impressive in terms of deal wins and analysts said a third quarter of disappointment may drag the stock’s performance.