‘Slow BFSI spending to hurt Q2 performance’
Weakness in the financial services sector as well as project delays and cancellations may impact the pace of revenue growth of Indian IT companies in the second quarter of the current fiscal, say industry analysts.
The July-September quarter is typically one of the better quarters for the $110 billion Indian IT sector, witnessing strong sequential revenue growth.
However, with challenges in the banking, financial services and insurance (BFSI) vertical and client specific issues weighing on growth, IT vendors like TCS and Infosys are expected to deliver tepid constant currency growth in Q2.
“The seasonal strength that leads to strongest sequential growth in the September quarter is hardly expected to play out this time, as slowness in spending by the BFSI vertical weighs on the industry. In dollar terms, growth will be pegged back further by sharp depreciation of the GBP (pound) vs the U.S. dollar,” Motilal Oswal said in a report.
Source: The Hindu
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