The fourth quarter earnings season is almost here and India Inc is all set to release its earnings for the quarter ended March 31, 2024, starting this week, with IT services major TCS to report its quarter numbers on Friday (April 12). Other IT firms to release its Q4 earnings this month are Infosys slated to report Q4FY24 numbers on April 18, Wipro on April 19, Tech Mahindra on April 25, and HCL Technologies on April 26.
According to an analysis report by HDFC Securities, IT sector growth is expected to bottom out in Q4FY24 and recover ‘gradually’ in FY25E. “The slowdown in macro is still a baseline scenario and lower discretionary spending and slower conversion from TCV to revenue is a feature and not a bug—at least in the near term—and deals will be focused on cost optimisation. Growth divergence will continue within the sector and guidance for FY25E is likely to factor in improved H2 performance,” it said. It further added that growth is expected to range from 1.3 per cent to +1.3 per cent QoQ (-7 per cent to +6 per cent in YoY terms) for tier-1 IT. Q4 growth expectations for mid-tier will range from 0.3 per cent QoQ to 4.2 per cent QoQ, it added.
India Inc, meanwhile, is expected to report marginal slow down in revenue growth in Q4FY24, on a quarter-to-quarter basis, said a report by ICRA. This, it added, will be influenced by a relatively high base, a perceived pause in the infrastructural activities as the model code of conduct kicks in ahead of the General Elections, and uncertainties in the global macro environment. Moreover, the concerns of the ongoing geopolitical tensions may adversely impact demand sentiments, especially for export-oriented sectors. Accordingly, India Inc’s ability to navigate these challenges remains critical.
Here are key dates to watch out for this month:
April 12: Tata Consultancy Services
April 17: ICICI Lombard General Insurance Company
April 18: Infosys, HDFC Life Insurance Company
April 19: Wipro
April 20: HDFC Bank
April 21: Persistent Systems
April 23: ICICI Prudential Life Insurance Company
April 24: LTIMindtree
April 25: Nestle India, Tech Mahindra, L&T Technology Services, Mphasis
April 26: HCL Technologies, MAruti Suzuki India
April 27: ICICI Bank, Yes Bank, IDFC First Bank
April 29: UltraTech Cement
April 30: Procter & Gamble Hygiene and Health care Limited, Exide Industries, Castrol India