Key Points
The Indian IT services companies are expected to see muted revenue growth with a slight improvement in operating margins during the fourth quarter of FY24..
Foreign brokerage firm Nomura expects largecap IT companies to report revenue growth ranging from -1.6% to +1.5% on a quarter-on-quarter (QoQ) basis, and midcap IT companies to post growth ranging from +0.7% to +3.7% QoQ in constant currency (CC) terms..
In largecaps, it expects Tata Consultancy Services (TCS) to report the strongest revenue growth of +1.5% QoQ in CC terms and expect Tech Mahindra to post the weakest growth of -1.6% QoQ in CC terms..
EBIT margins across most companies is estimated to have improved sequentially with the exception of HCL Technologies, LTIMindtree and eClerx Services, which may report some decline due to salary hikes, weak seasonality and investments. ..
Nomura expects Birlasoft to report organic growth of 2.5% in CC terms sequentially and EBIT margin expansion of 70 bps QoQ with a full-year EBITDA margin of 16%..
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