The final quarter of 2019-20 began on a steady note for the largest Indian information technology companies but lockdowns in various countries to contain the novel coronavirus outbreak in the last two weeks of March weighed down earnings.
Here's how India's largest software services providers fared in the quarter ended March.
While the quarter was disrupted by the Covid-19 outbreak, top line was aided by deal wins in the past quarters. Tata Consultancy Services Ltd. and Infosys Ltd. saw a sequential growth in revenue in rupee terms. Wipro Ltd., which has had a relatively subdued year, saw a marginal decline.
Earnings before interest and taxes margins remained largely stable. TCS saw a marginal expansion, while Infosys and Wipro saw contraction because of higher expenses from transition to work from home.
Wipro and TCS saw a sharp sequential decline in the sector's largest business vertical of financial services as lockdowns weighed on sentiment
The three Indian software services providers reported a mixed performance in North America, their largest business geography.
Outlook
Citing uncertainty because of the new coronavirus pandemic, Infosys and Wipro suspended providing annual guidance. TCS doesn't provide a forecast. All three suggested that the impact of the outbreak has yet to peak and the next six months are likely to be most challenging.
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