TCS Q3 results are being announced today.  TCS has already guided lower for this quarter.

According to multiple analysts, USD revenue growth for Indian IT Service providers in Q3 2015-2016 (Oct-Dec quarter) is likely decelerate to single digit growth Y-o-Y.

Other companies like Infosys, Wipro, HCL and Cognizant are also likely to witness a slowdown when they announce Q3 earnings starting this week.

The following will likely impact these companies’ revenue and profitability, to varying degrees:

USD revenues and profitability to be impacted due to currency movements as currencies have depreciated against the dollar

Chennai floods will have an impact on all companies, especially HCL, Cognizant, Wipro and TCS

All companies likely to tout their “Digital revenues” (Infosys’ Aikido, Wipro’s Holmes, TCS’ Ignio & Digitate)

Industry-specific (energy/ oil) and client-specific reasons for revenue decline likely

Higher cost of visas may impact future profitability

Macro-economic weakness

Focus on acquisitions to augment revenue deficit and/or augment “Digital” capability (Wipro’s Viteos and Designit acquisitions, TCS’s slated acquisition of Perot Systems, and Infosys’ Panaya acquisition)

I will be watching the TCS Q3 results today, and the rest as they are announced, and will post my thoughts over the next few weeks.

References:

Livemint article

Moneycontrol article