Information Technology Sector — Q3 FY24 Earnings Overview
5 companies reported. 1 bullish, 3 neutral, 1 bearish.
Average revenue growth: 0.3%
Sector sentiment: neutral
Aggregate revenue: ₹1,43,274 Cr
Average margin: 12.9%
Company Results
| Company | Revenue | YoY | Margin | Sentiment |
|---|---|---|---|---|
| TCS | ₹60,583 Cr | +4% | 27.0% | neutral medium |
| Infosys | ₹38,821 Cr | -1% | 20.5% | neutral high |
| HCLTech | ₹28,446 Cr | +4.3% | — | bullish high |
| Tech Mahindra | ₹13,101 Cr | -5.7% | — | bearish high |
| Coforge | ₹2,323 Cr | — | 17.0% | neutral medium |
Key sector risks this quarter
Coforge · high
Management acknowledged that pricing pressure remains acute and has been ongoing for five quarters, with no near-term relief expected.
Coforge · highBudgets for calendar 2024 are not showing any significant uptick over 2023, and management is not baking in any improvement into next year's plans.
Tech Mahindra · highManagement acknowledged telecom has not bottomed out and expects volatility for at least two more quarters, posing a risk to revenue recovery.
Infosys · highDigital transformation programs remain weak, with clients prioritizing cost takeout; no signs of recovery in Q3.
TCS · highNorth America revenue declined 3% YoY and BFSI degrew 3% YoY. Management could not provide a timeline for recovery, citing macro uncertainties.