Quote on IT sector Q3 earnings & outlook by Vinod TP, Research analyst, Geojit Financial Services
Below Quote on IT sector Q3 earnings & outlook by Vinod TP, Research analyst, Geojit Financial Services
"The IT industry is likely to showcase muted QoQ growth in Q3 due to near-term challenges such as prolonged higher inflation & interest rate, delaying discretionary projects and slowing down future earnings growth. Valuations are above long-term average; however, margins are expected to improve led by cost-cutting measures, easing attrition and improvement in utilization. Despite industry challenges, there is optimism in the sector, which is driven in anticipation of the end of the rate tightening cycle, which is expected to accelerate the resumption of delayed projects. While future attention is on new demand emerging from technologies like generative AI, machine learning and cloud computing, as well as new deals won by Indian IT companies during 2023. In context to the recent rally of the sector, IT may endeavour volatility in the short-term, however don’t foresee substantial weakening, offering accumulation strategy."
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