Big domestic IT services firms may see tepid revenue growth in Q3

Both TCS and Infosys are likely to expand operating margins in Q3

Big domestic information technology (IT) services firms are likely to see tepid performance in a seasonally weak third quarter (Q3). However, operating margins are expected to expand on the back of a weak rupee and optimisation measures.

Analysts say the dollar revenues of top five firms — Tata Consultancy Services (TCS), Infosys, HCL Technologies, Wipro and Tech Mahindra — are likely to grow in the range of 1.3 per cent to 3.5 per cent in sequential terms. 

TCS is expected to report a 90 basis points (bps) improvement in the operating margins in Q3 over the previous quarter, while Infosys is likely