The company had reported a net profit of Rs 3,832 crore in the September quarter while a profit after tax (PAT) of Rs 4,097 crore in the corresponding period of the last financial year.
A combination of adverse macros and a higher-than-expected number of furloughs could bog down revenue conversion of top Indian IT companies, a Motilal Oswal report said ahead of the earnings season which begins on January 11 when Tata Consultancy Services (TCS) and Inforsy will announce their December quarter results.
Much of the gains in smallcap IT stocks have been due to the broad-based rally in the smallcap segment in 2023. The S&P BSE Smallcap index, a barometer of the performance of smallcap stocks, has rallied 45% year-to-date. While the broad-based gains in the smallcap space has contributed to the rally in IT stocks of this segment, some of the stocks have been backed by strong institutional buying and robust earnings performance.
Accenture’s weak guidance for Q2FY24 (hinting at a sequential decline in revenue could mean a weak December quarter for most Indian IT companies largely due to higher furloughs and fewer working days.
TCS shares are up 10.35 per cent for the one-month period. Infosys shares are up 9.37 per cent for the same period. Wipro has climbed 12.44 per cent, HCL Tech 13.83 per cent and TechM 8.13 per cent.