Constant Currency

Though they are the biggest laggards this year, headwinds in the IT sector are expected to peter out by end-FY23, thus helping improve margins.

What is constant currency and why is it important this earnings season?

Constant currency refers to a fixed exchange rate that eliminates fluctuations when calculating financial performance figures

TCS Q3 performance in-line, estimates may not be tweaked: Pros

While the 2 percent sequential growth in third quarter constant currency revenue of Tata Consultancy Services is marginally better than market estimates, most other numbers are largely in line. Experts say the current performance is largely priced in and see no major revisions in the yearly estimates.

Infosys Q2 seen to be slowest Sept quarter since 2009, BFSI key

Its constant currency guidance is expected to be lower to 8.5-10 percent from 10.5-12 percent. Infosys had already lowered guidance to 10.5 percent-12 percent in constant currency from 11.5-13.5 percent in last quarter.

NIIT Tech Q4 margins may fall on weaker revenue momentum

Revenue may show a slight decline in constant currency terms. There were sizable project completions in the prior quarters and no immediate new project ramp-up to compensate for this. The company has a large exposure to British pound (about 18 percent), and hence there will be cross currency headwinds of 120 -130 basis points.

HCL Tech Q3 below estimates; net up 0.3%, $ revenue up 1.3%

HCL Tech has disappointed the street with its January-March quarter results. It posted Q3 net profit at Rs 1926 crore up 0.3 percent from last quarter. Rupee revenue climbed 3.4 percent at Rs 10698 crore on sequential basis. In dollar terms, revenue was up 1.3 percent, at USD 1587 million.

Q1FY16 curtain raiser: Dollar revenue to pinch IT cos again

Negative sentiment may have been already priced in as two other mid-cap companies Persistent and KPIT Technologies have also issued earnings warnings. Persistent had alerted investors that certain client specific issues could result in dollar revenue decline sequentially.

H2 will be better than H1, but not drastically: Geometric

Manu Parpia, MD and CEO of Geometric says the company saw constant currency growth at 4 percent in the third quarter. He expects Geometric's standalone business to grow in high single-digits in FY15.