Results preview: IT companies may see green shoots in June quarter

But, Q1FY25 could rank among the weakest in the past decade

An uptick in large cost take-out deals that have been signed over recent quarters, coupled with no further deterioration of the macro environment, could well see the Indian IT services sector post an improvement in the first three months of 2024-25.

Despite growth on a sequential basis, ongoing cost cuts and a lid on discretionary spending mean the latest June quarter could rank among the weakest first quarters over the past decade. The June quarter is usually considered as a seasonally strong period for the IT sector.

“The brutal winter of discretionary spend cuts in the industry