Next 2 qtrs challenging for IT sector

New Delhi: The results of top-tier companies TCS and Infosys have tripped on global uncertainties and missed street estimates, setting a subdued tone for Q4 show by the IT pack, and experts see choppy 1-2 quarters for the industry, but are hopeful of subsequent recovery.

The earnings’ season started on a sombre note with the Q4 scorecards that fell short of expectations, but more importantly the management commentary of India’s top two IT services companies was punctuated with words of caution about prevailing customer sentiments across BFSI, technology services and certain other verticals, particularly in the US.

While Infosys top brass spoke of unplanned project ramp downs and decision making delays by some customers, TCS talked of some clients deferring newer, non-critical initiatives. Industry veteran and former Infosys director TV Mohandas Pai says Q4FY23 will be subdued for IT players, but that extent and impact will depend on profile and strategy of individual companies.