The one bright star in a bleak year for IT

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New Delhi/Bengaluru: HCL Technologies Ltd is projected to top the charts in revenue growth and profitability among IT services companies in FY24, otherwise a bleak year for the Indian bluechips..

An analysis of two investor notes by financial services firms Nomura and HDFC Securities, plus a Bloomberg poll of analysts, showed the Noida-headquartered company may grow revenues by 4.7% in FY24, the best by a large-cap firm in India's $253-billion IT services industry..

In comparison, Tata Consultancy Services (TCS), Indias largest IT services firm by market value, could end the year with a slightly slower revenue growth of close to 4%, driven by what Nomura and HDFC Securities project could be a 1.5% sequential growth in dollar revenue in the March quarter..

A Bloomberg poll of 43 analysts projected TCS to report FY24 revenue of $28.97 billion, thus registering a March quarter revenue of $7.26 billiona marginal sequential decline..

Chirajeet Sengupta, managing partner at financial research and consultancy firm Everest Group, concurred, adding there have been no signs of recovery that the industry has seen through the last three months of FY24." Apurva Prasad, vice-president of institutional research at HDFC Securities, said in the investor note that growth in the industry, in the March quarter, is expected to bottom out.".

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