India’s information technology sector faces its worst second-quarter (July-September) performance in eight years, a report by Kotak Institutional Equities has said, NDTV reported. The report said revenues at the country’s largest IT companies are expected to grow between 0.5%-3% during the quarter compared to the previous one (April-June).
Growth was being impacted by “broad-based” weaknesses in the banking, financial services and insurance industries as well as “weak healthcare and delays in projects across many clients”, the report said. Infosys is expected to be the highest gainer with a 3% rise in revenues, while HCL Technologies will gain by 2.6%. Tata Communication Services and Wipro are expected to grow by 2.4% and 0.5% respectively, according to the report.
Britain’s decision to exit the European Union has also impacted the growth of the IT sector, The Economic Times reported. “The demand environment for IT services remains weak with clients under-spending budgets,” said Ambit Capital analyst Sagar Rastogi. “We also expect management commentary and guidance to remain muted.”