Q3FY23 a mixed bag for IT companies - A look at how they performed

The big takeaways from the Q3 earnings is that things are not as bad as what the street was fearing. In fact TCS, Infosys and HCL Tech have reported a revenue beat.

In terms of growth rate, HCL Tech tops the chart with a 5 percent constant currency revenue growth aided by strength in its products business. However a year on year picture shows that all the companies have reported a double digit revenue growth.

But the performance on margins was mixed. Infosys, TCS missed their estimates, while HCL Tech and Wipro gave a positive surprise on their margins.

The deal wins have been fairly steady. In fact Infosys’s large deal wins are the best in the last 8 quarters. For Wipro as well there was a deal win improvement on a quarter on quarter basis. TCS also indicated that the qualified pipeline is higher. So despite the macro uncertainty, the deal wins and the pipeline continues to remain steady.

In terms of FY23 guidance, Infosys raised its guidance to 16-16.5 percent from 13-15 percent earlier. Infosys is also likely to be the industry leader when it comes to growth in FY23.

Attrition too has moderated across the board for all the IT companies.