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Published: January 8, 2024
Updated: January 8, 2024

Q3 Earnings Calendar : IT Giants TCS and Infosys to Set the Tone in a Challenging Quarter

As the Q3 earnings season unfolds, the IT sector takes the stage with industry giants Tata Consultancy Services (TCS) and Infosys gearing up to announce their results on January 11. However, December, being a seasonally weak quarter for IT majors, poses challenges, with analysts anticipating the impact of higher furloughs and postponed wage hikes on margins.

I. Key Players in the Spotlight:

Apart from TCS and Infosys, the week ahead brings forth a lineup of prominent players, including HCL Tech, Wipro, and HDFC Life Insurance. These entities are closely watched as they navigate the complexities of the challenging quarter.

II. Earnings Calendar Highlights:

Here's a snapshot of the notable companies announcing their Q3 results throughout the week:

January 8: SG Mart, IEL Ltd, Spectrum Foods, Franklin Industries, GDL Leasing, and Finance.

January 9: Delta Corp, Bajel Projects, Standard Capital Markets, Ashapuri Gold Ornament, Reliance Home Finance, Cropster Agro, Betala Global Securities.

January 10: Tine Agro, Sunita Tools, SPS Finquest, UH Zaveri, Martin Burn, 7NR Retail, Vandana Knitwear, Orosil Smiths India, Viij Finance, Corporate Merchant Bankers.

January 11: TCS, Infosys, HDFC AMC, GTPL Hathway, 5Paisa Capital, Rajoo Engineers, AGI Infra, Plastiblends India, Kenvi Jewels, Gujarat Hotels, Vijay Textiles, Shekhawati PolyYarn, Quasar India, Mercury Trade Link.

January 12: HCL Tech, Wipro, HDFC Life Insurance, Anand Rathi Wealth, JTL Industries, Tata Metaliks, Bharat Bijlee, Hi-Tech Pipes, Aditya Birla Money, Artson Engineering, International Travel House, LKP Finance, Amal Ltd.

January 13: Avenue Supermarts (DMart), Wardwizard Innovations and Mobility, Justride Enterprises, MRP Agro, Confidence Finance, Trading, and others.

III. Analyst Expectations and Sector Dynamics:

Nuvama Institutional Equities predicts that most technology companies will likely retain their FY24 guidance. The focus shifts from FY24 to FY25/26, emphasizing the industry's interest in understanding how client budgets are shaping up for 2024, particularly after recent US Fed commentary.

IV. Revenue Growth Projections:

Nuvama suggests a revenue growth range of -4% to 4% for most companies in Q3. This underscores the resilience of the sector amid challenges, with a forward-looking perspective towards FY25/26.

Sustaining the momentum would be the focus amidst a challenging quarter:

As IT majors embark on the Q3 earnings journey, the challenges of a seasonally weak quarter are met with anticipation and strategic planning. The coming week's results will not only reflect the immediate financial health of these companies but also provide insights into the broader economic landscape.