Information Technology Sector — Q2 FY24 Earnings Overview
5 companies reported. 2 bullish, 2 neutral, 1 bearish.
Average revenue growth: 5.3%
Sector sentiment: bullish
Aggregate revenue: ₹1,40,498 Cr
Average margin: 12.6%
Company Results
| Company | Revenue | YoY | Margin | Sentiment |
|---|---|---|---|---|
| TCS | ₹59,692 Cr | +7.9% | 24.3% | neutral medium |
| Infosys | ₹38,994 Cr | +2.5% | 21.2% | neutral high |
| HCLTech | ₹26,672 Cr | — | — | bullish high |
| Tech Mahindra | ₹12,864 Cr | — | — | bearish high |
| Coforge | ₹2,276 Cr | +16.2% | 17.6% | bullish high |
Key sector risks this quarter
Tech Mahindra · high
Telecom vertical (37% of revenue) continues to decline with no near-term recovery expected, as 5G spending remains slow.
Tech Mahindra · highTop 5 client revenues have declined ~30% over six quarters due to wallet share loss and non-core business exits.
Coforge · highManagement acknowledged that the macro environment remains challenging and could stress demand, especially in discretionary spending.
HCLTech · highManagement noted discretionary spend has not recovered as expected, and the macro environment remains uncertain, which could pressure organic growth.
Infosys · highClients continue to cut discretionary and transformation projects, with no expected recovery in calendar 2024, which could further pressure revenue growth.