As TCS reports its fourth quarter earnings on Tuesday, IT stocks are under pressure. TCS lost more than 2% overall on the day, while rival Infosys almost reached its 52-week lows and has down by about 3%. Many others, HCL Tech, Wipro, and Tech Mahindra are also losing money. The industry is in the spotlight since TCS will open the Q4 earnings season tomorrow, followed by other competitors.
The BSE IT index was trading at 28,541.03 at the time of writing, down 255.17 points or 0.89%. Each of TCS and Infosys had a 1.4% decline.
Meanwhile, TCS has fallen 2.2% in the trading session and Infosys has fallen 2.7% with a share price that is just a few rupees above its 52-week low of 1,355.50.
On April 13, Infosys will release its financial results following TCS’ Q4 earnings.
Other significant equities were also down; Tech Mahindra, Wipro, and HCL Tech all saw declines of around 1%. Coforge and L&T Technology Services both experienced 1.4% and 1.5% declines. LTI Mindtree fell by more than 0.5%. Persistent Systems likewise saw a decline of more than 1%.
In Q4FY23, the IT industry is anticipated to post a seasonally bad quarter.
According to ICICI Direct, Q4FY23 IT company sales growth will range from -1% to 2.5% on a QoQ constant currency basis.
TCS, Infosys, and HCL Tech (IT services) are predicted to exhibit moderate QoQ CC revenue growth of 1%, 0.5%, and 1% QoQ, respectively, in Tier 1, while Wipro is anticipated to report a QoQ revenue loss of 0.5%.
The brokerage anticipates LTIMindtree and Coforge, two tier II IT businesses, to show consistent QoQ CC revenue growth of 2% and 2.5%, respectively, while Tech Mahindra’s revenue is anticipated to fall by 1%.
