With IT bellweathers Tata Consultancy Services and Infosys set to announce their third quarter earnings, Shashi Bhusan of IDFC Securities said on Thursday that the sector is bottoming out in terms of expectation and performance.
Speaking to CNBC-TV18, IT Analyst Bhusan said that he expected a weak performance from both companies. TCS will announce its earnings later on Thursday, while Infosys will release its numbers on Friday.
Bhusan estimated TCS' growth at 0.5 percent in dollar terms, while he expected Infosys' revenue to fall by around 0.3 percent in constant currency terms.
According to average of estimates of analysts polled by CNBC-TV18, TCS' earnings are expected to be weak on account of seasonality (due to year-end furloughs) and cross currency headwinds. Profit is seen falling 1.5 percent sequentially to Rs 6,489 crore and revenue may grow 1 percent to Rs 29,577 crore in Q3.
Bhusan said that while most of the negatives are already reflected in TCS and Infosys’ stock prices and there should be no further downgrade, expected curbs by the incoming Donald Trump-led US administration on H1B visas may still cause uncertainty.
For entire interview, watch accompanying video.