Key Points
HCLTech and Tata Consultancy Services (TCS) will likely pull ahead of their top-tier software rivals as the $250-billion Indian outsourcing industry starts publishing next week the fourth-quarter earnings, which investors will comb for commentary on business outlook in FY25 that many expect would see higher discretionary expenses by US and European companies...
The start to the US rate easing cycle later this year should aid IT budgets in the primary revenue-generating market for Indian technology, while strong deal wins in recent quarters would translate into revenue growth acceleration in FY25...
Recovery of furloughs and ramp-up of recently won large deals should aid revenue growth..
For the likes of TCS, Infosys, HCLTech and Wipro, it expects 4QFY24 constant currency (CC) organic revenue growth at -1% to +1%, while mid- and small-caps could report 1-3% QoQ (quarter on quarter) USD organic revenue growth...
Meanwhile, a Jefferies report said: We expect aggregate revenue growth for our coverage to remain subdued at 0.3% QoQ cc in 4QFY24 as continued pressure on discretionary IT spends limit the pace of recovery from furloughs..
