InvestorQ : What are the expectations from IT companies like Infosys, TCS, Wipro and HCL Tech for the third quarter ending Dec-20?
Sam Eswaran made post

What are the expectations from IT companies like Infosys, TCS, Wipro and HCL Tech for the third quarter ending Dec-20?

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Moii Chavate answered.
3 months ago
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As TCS is poised to announce results on 08 January, analysts are betting this could be the finest quarter for IT companies in the last 10 years. The three things that analysts are positive about IT stocks are the huge order books, sharp growth in revenues and guidance upgrades in Q3. There is some element of caution on the operating margins front.

In terms of specific players in the IT industry, HCL Tech and Infosys are expected to raise their revenue guidance as well as their margin guidance. This is despite the spike in wage costs across all IT companies. At the same time, Infosys has been narrowing its market cap ratio gap with TCS and this quarter it is likely to get compressed even further.

The macro level estimate is that revenue guidance in constant currency terms could be ranging between 2% and 5% in the December 2020 quarter. Even, cross currency moves are expected to benefit IT stocks in Q3. In terms of sectoral plays, digital would still lead the growth but the expectation is that retail and transport could make a comeback too.

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