IT firms likely to post healthy growth in Q3
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IT firms likely to post healthy growth in Q3
New Delhi: Based on the improved business demand and deal flow, most of the IT firms expect to post up to five percent growth in dollar term revenues in the third quarter of the fiscal. Diptarup Chakraborti, Gartner's Principal Research Analyst said, "We have an optimistic outlook for the IT sector. Margins will stabilize gradually. Q2 was a turnaround quarter for the IT industry and we believe that the trend would continue in Q3 as well." IT major Infosys will kickstart the quarterly earnings season from January 12, followed by other IT majors - Wipro, HCL Tech and TCS. Brokerage firm Sharekhan said, "Despite lower number of working days during the quarter, we expect IT majors to post a healthy volume growth due to higher business integration and transformation work coming from mergers and acquisitions." During the third quarter, the rupee has appreciated nearly three percent against the dollar. However, analysts asked companies to not to increase salary of their employees as it may cast some pressure on the profit margins of the companies.

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