IT companies may see modest rebound in Q1 earnings

IT firms are poised for a modest rebound during the April-June quarter, on the back of large deal ramp-up and moderation in discretionary spending cuts. The period is also seen as a seasonally stronger quarter.

According to Motilal Oswal, the industry is set to experience “sequential improvement in a seasonally strong quarter” despite a challenging backdrop marked by significant cuts in discretionary spending in previous quarters. This period could signal the end of what has been described as the “brutal winter of discretionary spend cuts,” the brokerage said in its preview report.