India’s top three IT firms — Tata Consultancy Services, Infosys and HCLTech — spoke of demand uncertainty, delays in decision making and even some project rampdowns as they announced their FY23 and fourth quarter results earlier this month. While TCS doesn’t provide revenue guidance, Infosys’ FY24 revenue growth forecast of 4-7% meant the company will expand at its slowest pace in six years.
It also missed its revenue growth guidance, which came at 15.4%. These two factors mainly contributed to its stock falling the most in three years.
HCLTech’s revenue growth too was near the lower end of its guided range of 13.5-14.5%. The Nifty IT index itself has fallen nearly 5% in the last 1 month.
Management commentary about macro headwinds impacting demand, unexpected project rampdowns and revenue forecasts for FY24 suggest that the post-pandemic digital push and tech spending splurge by clients will see a halt.
Here’s a look at the main data points of what the Big 3 have achieved in Q4 and fiscal year ending 2023 and how does FY24 looks like.
