Results preview: IT companies brace for Q2 setback on muted growth

Analysts point at slowdown in discretionary programmes, slow BFSI growth

The July-September quarter, the second in the financial year, is always a strong one for Indian IT services. However, the second quarter of FY24 is expected to be muted, and, with that, the hope of double-digit growth is now being pushed to FY25.

However, analysts are expecting the momentum in the closure of record total contract values (TCVs) will continue, as has been the case over the last two quarters.

Both in Q4FY23 and Q1FY24, the TCVs signed by most of the large and midcap IT services firms have been at the higher end, but that has not resulted in revenue growth.

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