After best in a decade Q3 results, the Indian IT sector is all set to announce quarter four results.

  • After blockbuster results in the third quarter, analysts are bullish on the Indian IT sector Q4 results.
  • HCL Tech, Infosys, TCS, and other IT companies will announce quarterly performance in April.
  • After Accenture’s increase in guidance, analysts are looking for Indian players to see the revenue outlook change.
  • TCS, HCL and Infosys, and other IT companies are expected to report their best 4th quarter in the last five years.

India’s IT majors, Tata Consultancy Services, HCL Technologies, Infosys, Wipro, and Tech Mahindra, reported the best quarter in many years in 2021. The market expects the following three months ending March 2021 to be as exciting or better. This quarter would be the best fourth quarter for the top tier-I IT companies in the previous five years, as per the Motilal Oswal Broking Firm report.

Motilal Oswal Firm has estimated 2.5 per cent to 3.4 per cent growth of tier-I IT companies. ICICI Direct has predicted 3 to 4.5 per cent growth, HDFC Securities at 3.9 per cent, and Edelweiss estimates of 2 to 6 per cent.

IT analysts are expecting that the results will break the previous records.  Accenture raised its full-year guidance from 4-6 per cent to 6.5-8.5 per cent in US dollars; all are looking for how good the outlook is for other IT firms.

As per Edelweiss’s 1st April report, IT companies’ upward guidance revision three quarters ago would be followed by upgrades in consensus forecasts for the coming quarter.

HCL Tech has annual revenue guidance at 2 to 3 per cent, Wipro at 1.5 to 3.5 per cent, and Infosys at 4.5 to 5 per cent. Not only are these companies continuing to rake in new deals, but a strong dollar⁠, 2.99% rise in the value of the greenback in the last year means they will be pulling in higher revenue in rupee terms.

Some IT companies are likely to register a decline in margins due to Pay hikes announced in Jan to March. Other reasons for lower margins are the hybrid work model, including higher offshoring, lower subcontractor costs, and structurally lower travel marketing costs.

Stock prices of IT companies like Infosys, Wipro, HCL, TCS are already on spike since the beginning of the year on the back of digital transformation and deal wins.

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