New Delhi : Indian IT firms are likely to post muted revenue growth in the December-quarter, affected by Chennai-floods and more than expected furloughs in the US and European markets, analysts said.
The October-December period is usually a weak quarter for Indian IT players as business is impacted by low volume growth on account of Christmas and New Year holidays and furloughs in the US and Europe.
“Weak Q3 seasonality for IT Services is compounded this year by higher-than-expected furloughs, cross-currency movement and impact from Chennai floods affecting delivery for five days, and high absenteeism in the following few days,” Motilal Oswal said.
Country’s largest software services firm TCS will kickstart the quarterly earnings season for IT firms from January 12, followed by
Infosys (January 14), Wipro (January 18) and HCL Technologies (January 19).
