Infosys is the best performer in Q2 among Indian IT industries

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    A report from Jefferies predicts that Infosys, a major provider of IT services, would announce second-quarter revenue increase in constant currency of 4%. According to the research firm, which forecasts a 3.6% increase in revenue for the quarter in the Indian IT sector, deal ramp ups and seasonal strength would be the main drivers of this rise.

    A repurchase announcement along with the second quarter results were anticipated to be made public on October 13 by the Bangalore-based IT company, according to the newspaper. An rising number of corporations are using buybacks as a means of rewarding shareholders because they represent the company’s confidence in its own stock. Additionally, it raises the stock price and lowers the number of outstanding shares in the system.

    The stock price of Infosys suffered the same fate as all other IT equities over the past six months, falling by more than 35% due to concerns of a recession in its biggest market, the US.

    credit: businessinsider

    However, Jefferies agrees with some of the management’s optimism about Infosys’ prospects because it thinks the business is “better equipped” to deal with cross-currency challenges because the Dollar has been rising while the Pound and Euro have been falling.

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    On an inorganic basis, Wipro is anticipated to match Infosys’ revenue growth. The best margin improvement, up to 50 basis points, is anticipated from TCS, far exceeding the sectors expectations of 30 basis points.

    The majority of other IT companies will still be under pressure from wage increases and excessive turnover. According to a recent analysis by TeamLease, the turnover rate for contract personnel will increase by up to 55% in FY23, compared to 49% in FY 2022.

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