Q3 a mixed bag for IT majors

The October-December quarter broadly marked a turning point for domestic IT firms, with signs of revival in discretionary spending and a healthy order book. This was met with some optimism by analysts as the quarter is seasonally a weak one due to furloughs.

While Infosys and Wipro exceeded Street expectations, TCS and HCLTech were not able to meet analysts’ forecasts. Despite robust deal wins, challenges in total contract value (TCV) conversion and sustained growth in emerging markets remain concerns for the industry.