Top 5 Indian IT companies strike optimistic note as North America market recovers.

The top five information technology (IT) companies have kick-started the first quarter of financial year 2024-25 (Q1FY25) on an optimistic note, with the North American market leading the way. However, the IT sector is still not out of the woods, with no signs of pickup in discretionary spending.

Q1 results of these companies indicate that FY25 will be slightly better than FY24. Analysts say that while the worst seems to be behind the top five IT pack, some tier 1 firms have company-specific challenges that will take time to address.

Gaurav Parab, Principal Research Analyst at advisory firm NelsonHall believes that there are clear signs of recovery across verticals, and results from the key North American market are encouraging. “Margin expansion is also seen across the board, as internal optimisation and productivity programmes launched last year are now bearing fruit, setting the firms up for a better H1 and the rest of the year,” Parab told Moneycontrol.

But for now, Infosys, more or less, leads the pack in key metrics among the top five IT companies at a time when macroeconomic issues persist and demand is yet to fully recover.

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Credit - Money Control