Page 22 - It Sector News Today

Shares of L&T Technology Services (LTTS) lost over 5 percent on Wednesday after the company lowered its revenue growth guidance for the current fiscal year despite in-line revenue for the quarter ended September 2023 (FY24).

According to CEO Debashis Chatterjee, although LTIMindtree anticipates above average furloughs in Q3, the company remains confident of its robust order inflow to deliver stronger H2 of FY24, and setting a promising stage for FY25.

Persistent Systems Q2 earnings: The IT firm reported its highest-ever deal wins, worth $475 million, in the July-September period

Three IT majors, Tata Consultancy Services (TCS), Infosys and HCL Technologies, have announced their earnings for the period ended September 30, 2023.

Wipro Q2 preview: Wipros consolidated net profit may rise 10.3% on year to Rs 2,933 crore in the September quarter, according to the average of estimates given by nine brokerages, and revenue is expected to grow just 1.3% to Rs 22,828 crore. Sequentially, the topline is expected to be flat, while profit is likely to rise 2.2%, the estimates showed.

The developments come days after TCS completed its investigation into six staffing firms that were found to have bribed senior recruitment executives to get business

Companies slash growth forecast for FY24 amid macroeconomic headwinds

TCS’ peers such as Infosys and Wipro shares lagged behind with losses of 12.71% and 36.70%, respectively, during the last two years.

Analyst Sandip Sabharwal believes that 2024 might be a tougher year than 2023, contrary to what most analysts are predicting. He warns investors to be cautious about stocks that have seen a decent run-up in anticipation of performance improvement. Sabharwal also expresses skepticism about the IT sector, stating that while some specific companies may do well, larger diversified IT firms are facing significant challenges.

Deal wins were robust across the board but the overall macroeconomic environment remains shaky in the major markets of the US and EU