India IT Services Q4 Results Preview - Navigates Weakness, Looks To Gen AI For Growth: DRChoksey

"NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..DRChoksey Research Report.The top-line growth for IT companies has come under severe pressure in recent quarters and this trend is expected to continue in Q4 FY24E.Mega or large deals announcements have been lacking and the commentary on demand from both Indian and Global IT Services firms for H1 CY2024 has been cautious. Industry players anticipate a pickup in demand by the second half of CY2024, with expectations of a cut in the Federal funds rate and cautious spending due to the upcoming U.S. Elections in November 2024. Tier-1 IT companies are expected to deliver average QoQ top-line growth of -0.5% to +2.7%, with Wipro Ltd. expected to report a decline. Tier-1 IT companies are expected to maintain stable Ebit margins QoQ with cautiously optimistic guidance. Clients will prioritize projects with a clear near-term return on investment and cost efficiencies due to the uncertain macroeconomic landscape, leading to a subdued demand recovery. Software-as-a-service companies are experiencing flourishing growth in data and cloud products, signaling the client’s recognition of the need for architectural adjustments to leverage Gen AI fully. Indian IT service companies have also witnessed lack of recovery in the near-term demand, contributing to a negative outlook on stocks in the IT services sector..Click on the attachment to read the full report:.IT Q4 Results Preview - No Major Relief From Q3; Slow Revenue Growth, Steady Margins: Anand Rathi.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

India IT Services Q4 Results Preview - Navigates Weakness, Looks To Gen AI For Growth: DRChoksey

Indian IT service companies have also witnessed lack of recovery in the near-term demand, contributing to a negative outlook on stocks in the IT services sector.

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India IT Services Q4 Results Preview - Navigates Weakness, Looks To Gen AI For Growth: DRChoksey

Indian IT service companies have also witnessed lack of recovery in the near-term demand, contributing to a negative outlook on stocks in the IT services sector.

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