Outlook on IT sector negative; TCS will disappoint like Infosys: SMC Global

Interview with Saurabh Jain, Head-Fundamental Research at SMC Global Securities

The IT sector is unlikely to perform well in FY18, says SAURABH JAIN, Head-Fundamental Research at SMC Global Securities. In an interview with Aprajita Sharma, he adds that IT companies should reward shareholders with buybacks and dividends given lack of growth opportunities at present. Edited excerpts: 

What is your take on the Infosys’ March quarter results?

The company reported the disappointing set of numbers, but in-line with the expectations. It lowered revenue guidance for the fourth time by forecasting it in range of 6.5% to 8.5% for FY18. The margins came in line with the guidance they previously stated. The business conditions