TCS, HCL Tech to do better than Infosys on Q2 earnings front: Rajat Rajgariha

In a chat with ET Now, Rajat Rajgarhia, Director- Research, Motilal Oswal Securities shares his views on IT sector:

ET Now: What is the expectation then from the rest of the IT basket, Tech Mahindra from the midcaps, HCL Technologies, TCS ? Do you think they can match up to Infy’s performance or better still better that?

Rajat Rajgarhia: Some of the companies like TCS, HCL Tech will do even better because their momentum has been very strong for the last many quarters. While Infosys is a case where the growth rates are coming from low single digit to now closer to double digits, some of the companies like TCS are anyways growing in teens.

They are almost growing at 15% plus top line growth and this is the quarter when the YoY currency depreciation of 13% will significantly boost the profits. In fact for companies like TCS we expect that not just this quarter but the next two quarters also, their profit growth rates would be more than 25-30%. So they will do well, TCS, HCL Tech, Tech Mahindra and when Infosys comes and joins that same group of growing the rates at more closer to 12-15%, the whole pack looks good.