Indian IT firms to see tepid March qtr results on weak macro, stressed BFSI - analysts

KPIT Technologies

03/04/2023 08:21

** Analysts say weak macroeconomic conditions and stress in
key Banking, Financial Services, and Insurance (BFSI) vertical
to weigh on Indian IT services firms' March quarter results
    ** Given uncertain macro conditions, JP Morgan analysts see
"cautious" FY24 revenue guidance and "muted" margin guidance
from Infosys Ltd  INFY.NS  and HCL Technologies Ltd  HCLT.NS  
    ** Monitor management commentary on near-term IT spending by
banks, Motilal Oswal analysts say, adding, "Indian IT services
firms do not have meaningful exposure to affected US regional
banks"
    ** Hi-Tech, Manufacturing and Retail may also report muted
growth in 4Q, says the Indian brokerage, which picks Tata
Consultancy Services Ltd  TCS.NS  as top pick in IT sector
    ** IT firms INFY and HCLT to post organic constant currency
Q/Q de-growth while engineering and research & development
(ER&D) firms KPIT Technologies Ltd  KPIE.NS  and Persistent
Systems Ltd  PERS.NS  to post soft positive growth - JPM
    ** JPM, underweight on Indian IT sector, cuts FY24/25 EPS
estimates for IT firms by 1%-10% as cos "do not have enough
levers available to expand margin significantly in absence of
strong growth"


 (Reporting by Nandan Mandayam in Bengaluru)
 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))