The company has attributed the slowdown to continuing client caution on ‘build’ spends, slower-tpipeline conversion and some reduction in total pipeline, analysts at Kotak Institutional Equities (KIE) wrote in a report.
The KIE analysts added the slowdown in discretionary spending will have implications on Indian IT, with 1QFY24 likely to be weak. “We believe the recent run-up in the sector has been ahead of fundamentals, they observed.
Delays in decision-making and pullbacks in discretionary spending have implications for the of Indian IT, they added. “We expect revenues in Q1FY24 to be weaker than in Q4FY23 across companies in our coverage universe,” they wrote. They believe the demand environment is especially weak in the financial services and technology segments.
Credit : https://www.financialexpress.com/market/it-stocks-fall-as-epam-lowers-guidance/3115974/
