IT Q2 Results Preview - Poised For Strong Growth: DRChoksey

Deven Choksey Research Report

Over the past few quarters, Indian IT companies have been grappling with weak discretionary spending, delayed client budgets, and persistent macroeconomic challenges. However, the Q1 FY25, earnings backed with management commentary, indicated initial signs of recovery, especially in the BFSI vertical.

Major U.S. banks have ramped up their tech spending over the past few quarters. With the Federal Reserve announcing a rate cut, there is a possibility that lower borrowing costs could encourage companies to increase their technology spending further.

The full impact of these increased tech investments will likely become more apparent from Q3 FY25E onwards, as companies solidify their budgets for CY25E, offering a promising outlook for further growth in technology spending.

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