The top four Indian IT services firms —TCS, Infosys, Wipro, and HCLTech — saw year-on-year decline in their total contract value (TCV) during the July-September period, due to the absence of mega deals and continued lumpiness in large deals.
Further, geographically, revenue contribution from North America continued to decline for most them.
Despite this, they expressed optimism for demand recovery in the second half of FY25, especially in the BFSI sector and said smaller deals are helping sustain momentum even as larger clients delay decisions with AI and digital transformation projects being key drivers.
Also Read Who is Vasundhara, billionaire Pankaj Oswal’s daughter arrested in Uganda? A look at her career, lavish Rs 1649 crore house, family, and net worth Complete relief to Infosys on reverse-charge GST likely Revenue loss fears may impede GST slabs rejig plan CNG prices to increase as APM gas supplies cut, yet CGD firms may take a hit
Brokerages attributed the fall in deals primarily to client hesitancy and macroeconomic uncertainties, with discretionary spending remaining weak.
TCS reported a TCV of $8.6 billion, down from $11.2 billion a year ago, despite a sequential increase from $8.3 billion in the June quarter.
Meanwhile, Infosys’ large deals TCV fell to $2.4 billion during the quarter against $7.7 billion reported in the year ago period. Further, it was also lower than $4.1 billion reported in June quarter.
Also ReadJSW Energy signs PPAs for 1,200 MW solar-wind hybrid capacity with MSEDCL
HCLTech also saw decline in its deal wins taking the total contract value to $2.22 billion against $3.97 billion reported year ago. However, it grew sequentially from $1.96 billion reported in the June quarter.
Wipro, too, reported a year-on-year decline in its total bookings. The company’s TCV came in at $3.6 billion down from $3.8 billion reported in the year ago quarter. However, the large deal wins rose to $1.5 billion — the highest in the last 10 quarters, which was also higher than $1.3 billion reported in Q2 FY24.
Despite the overall decline in larger contracts, IT firms are observing an increase in smaller deals ranging from $1 million to $50 million, noting that these deals are helping to sustain momentum even as larger clients delay their decisions.
» Read More
