The IT Services sector continues to face mixed demand trends, with no clear sector-wide tailwind as of yet. While pockets of strength remain in the US BFSI segment, expansion into adjacent areas has been limited.
“Clients of big IT companies remain focused on efficiency and cost-saving deals, with ramp-downs persisting, particularly in the UK and EU markets,” JM Financial said in a report.
“As a result, large-cap companies are expected to post 0-3.5% QoQ growth in constant currency (cc), while mid-caps may see slightly better growth at 2.8-4.6% cc,” the report added.
Companies like Infosys, LTIMindtree, and Persistent Systems with deal ramp momentum are likely to outperform, while exposure to UK/EU may weigh on TCS and Wipro.
JM Financials in a report highlighted how largecap IT companies will report their numbers for the September quarter:
