The June quarter earnings for the information technology (IT) sector are expected to be weak due to a slowdown in discretionary spending. Factors such as scaled-down budgets, lack of operating leverage, higher costs, transition costs, and pricing pressures are expected to weigh on earnings. IT companies are projected to report a 5.3% YoY revenue growth for the quarter, with a mere 0.4% sequential growth. Analysts also anticipate major IT players like Infosys and HCL Technologies to lower their sales growth outlook for FY24.
