Q3 preview: IT firms likely to post muted numbers; some mid-caps may shine

For Tier-I companies, most analysts see revenue growth between 1.3 per cent and 3.5 per cent in constant currency (CC) terms on a sequential basis.

Information technology (IT) companies' financial performance may have been muted in the October-December quarter (Q3) of the 2019-20 financial year, thanks to a seasonal weakness due to furloughs and fewer work days, besides continued challenges in the banking, financial services and insurance (BFSI) and retail verticals. Additionally, a waning impact of tax reforms in the US, and policy uncertainty ahead of Presidential elections there, might also have subdued the performance of Indian IT services companies.

The October-December period is usually a soft quarter for IT firms, since it has fewer work days due to the holiday season that falls in