Earlier in the month, industry bellwether Infosys turned around less than expected results with a 2.8 per cent dip in revenue and an extremely muted guidance for the coming year, but no one was surprised. For India’s IT sector, the writing has been on the wall for some time.
On Tuesday, India’s largest IT services company, TCS, announced results that barely managed to meet its own estimates and did not live up to market expectations. Usually the best performing among Tier I Indian IT companies, TCS showed low single digit growth and reported a smaller-than-expected rise in fourth-quarter earnings. It’s consolidated net profit rose by just 4.2 per cent to Rs 6,608 crore in the last quarter of FY (Financial Year) 17, from Rs 6,340 crore in the previous year. Analysts had expected profits to be higher. The only company whose guidance is a shade better is Cognizant, which too is talking about single digit growth in the next quarter.