According to most of the brokerages, it is going to be a muted quarter for most of the IT companies. Margins are going to be little better because of INR depreciation and favourable cross currency.

The Nifty IT index was up more than one percent on Friday and all stocks were buzzing ahead of the start of the results season next week. CNBC-TV18’s Nimesh Shah lines up the big sector-wide expectations.

Margins were going to be little better because of INR depreciation and favourable cross currency. In terms of EBIT (earnings before interest and taxes) margins growth, the street was pencilling in 10-50 basis points (bps) EBIT margin expansion in this quarter and the revenue growth across most of the IT companies was seen between 1 percent and 5 percent in dollar terms for this quarter.

The only headwind or the big headwind for the sector seemed to be the sluggish BFSI sector. That seems to be a pain-point for most of the large IT companies and some midcap companies as well. That is something to watch out for.

First Published:Jan 3, 2020 12:06 PM IST