IT Sector Q3 Results Expectation: IT stocks were under pressure before the third quarter results. TCS and HCL Tech slipped around 2 percent today. The results of IT companies along with TCS will start from Thursday. According to experts, midcap IT companies can do more wonders than the giants in Q3. Let us tell you that after Q2, while Nifty has given a negative return of 8 percent, the IT index has given an excellent return of 3.5 percent.
In fact, due to reduction in macro uncertainty, Trump in favor of H1-B visa and weak rupee, the market seems enthusiastic about the IT sector. According to analysts, the IT spending outlook will improve in CY25 and recovery is expected outside the US BFSI as well.
when will the results come
tcs The results will come on January 9. While HCL Tech on 13th January, Infosys on 16th January and LTIMINDTREE Results will come. on january 17th WIPRO And TECH MAHINDRA Presented its quarterly results.
Analysts believe that this is mostly a weak quarter for the sector. Weakens due to holidays and furloughs. Cross currency impact may also occur. Therefore, a slowdown in growth is possible in Q3. However, problems regarding growth may continue. The results of midcap companies may be better than largecap companies.
what is the estimate
According to CnbcTV18 estimates, in the Q3 quarter, TCS’s constant currency growth may see a jump of 0.3 percent on a quarter-on-quarter basis, while WIPRO’s CC earnings growth may see a decline of 0.6 percent. On a quarterly basis, there is a possibility of a jump of 0.9 percent, 4.4 percent and 4.7 percent respectively in the constant currency growth of INFOSYS, PERSISTENT and COFORGE in Q3.
Infosys’ earnings growth guidance in the third quarter may remain at 3.75 – 4.5%. While HCL Tech’s earnings growth guidance is likely to be at 3.5-5%.
What is the brokerage’s opinion regarding the guidance estimate?
CLSA has given guidance estimate for Infosys at 4.25-4.75%. Whereas Nuvama has given guidance estimate of 4.25-4.75%, UBS 4-5%, Kotak Institute 4.5-4.75% and Ambit 4.5-5%.
Nuvama has not made any change in its guidance estimate for HCL Tech. While CLSA has given a guidance estimate of 4-5 percent, Kotak Institute has given a guidance of 4.5-5 percent, Ambit has given a guidance of 4.5-5.5 percent.
IT Sector: Where will you keep an eye?
Commentary on client budget, recovery in discretionary spending, improvement in hiring, BFSI, telecom, manufacturing will be in focus.
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