Weak discretionary spending may bring down revenues of IT firms in Q1

Tremors felt after American IT services firm cut its CY2023 revenue guidance by 2% recently

IT firms

Sourabh Lele New Delhi

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Kotak Institutional Equities (KIE) has said that software services company EPAM Systems slashing its calendar year 2023 (CY23) revenue guidance to a decline of 2 per cent signals weak discretionary spending — and Indian information technology (IT) companies will not be immune to this trend.

EPAM, an American IT services company, has trimmed its revenue guidance for the current quarter to $1.16-1.17 billion, from $1.19-1.2 billion guidance provided in the first quarter (Q1) CY23 earnings call. The revenue growth outlook is about 5 per cent lower than earlier estimates.

The development has sent tremors through the IT services sector globally. In India, leading IT firms have already warned about the possible impact of economic uncertainties during the March quarter

First Published: Jun 06 2023 | 5:43 PM IST

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