Indian IT faces mixed Q2: more deals, slower growth
In short
Indian IT companies are going into Q2 earnings with mixed signs. They are winning more deals, but revenue growth is slowing and pricing power is falling, and large firms may post their weakest growth in three years.
This matters because investors are watching whether acquisitions are doing most of the work and whether Infosys cuts its guidance. The final numbers are still not known.
What the reporting says
Indian IT firms are heading into Q2 earnings with strong deal activity but weaker revenue growth and lower pricing power, and the reporting says large firms may post their weakest growth in three years. It adds that much of the growth may come from acquisitions rather than organic expansion, while Infosys is under watch for possible downward revenue guidance. The unknown is how each company will actually report.
Why it matters
Indian IT companies are approaching Q2 earnings with stronger deal activity but weaker revenue growth, and the reporting says large firms may see their slowest growth in three years. It also says acquisitions, rather than organic growth, may be doing much of the lifting, while Infosys is being watched for possible revenue-guidance cuts. The likely market effect is pressure on IT stocks if growth or guidance disappoints, but reported results are not yet available.