Indian Tech's Q1: 5 Things to Watch

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## What's Up with Indian Tech? 5 Things to Watch in Their Latest Report Card!

The Indian tech industry is about to open its books! Starting July 10th, big tech companies like TCS will start revealing their financial results for the April-June quarter. It's been a bit of a bumpy ride lately, with global worries like trade tensions and ongoing conflicts making companies hold back on extra spending. But here's a silver lining: they've actually been winning more new projects than expected!

Experts predict a mixed bag for this quarter – some companies will do better than others, especially the mid-sized ones. Here are five key things everyone will be watching:

**1. How Much Money Are They Making? (Revenue Growth)**

Don't expect huge jumps from the biggest tech firms; their sales might even dip slightly. Infosys and LTIMindtree could be exceptions, doing a bit better thanks to new projects kicking off and recent company purchases. On the flip side, smaller and mid-sized companies like Persistent Systems, Mphasis, and Coforge are expected to grow 2-4%, especially in banking, finance, and healthcare. While companies are still hesitant to spend extra, banking, healthcare, and energy sectors are showing some life. Manufacturing and high-tech, however, are still struggling.

**2. Are They Still Profitable? (Margin Watch)**

How much profit they make (their 'margins') will be key. They're juggling higher salaries, slower sales, and big investments in new tech like AI. Most big companies might see profits squeezed, except Infosys, which could keep its profits stable by being more efficient. Profits might fluctuate slightly, partly because sales aren't growing fast enough to boost efficiency, and the Indian Rupee's value against the US Dollar isn't helping. On the bright side, companies are also using AI to work smarter and cut costs.

**3. Is Demand Picking Up? (Demand Outlook)**

While demand is still uncertain, it's not as bad as initially feared. Company leaders, new project wins, and other data suggest demand has been stable. Experts believe the US economy will slow but avoid a full recession, which is good news. Even global tech giant Accenture is seeing signs of recovery, with better pricing and clients moving from just 'focusing' to 'leaping forward' with new projects. They still have a strong list of potential new projects, especially for helping clients save money, update their tech, and use AI.

**4. What About AI? (Generative AI Deals)**

Generative AI (like ChatGPT) is a huge growth area, and many tech companies are investing heavily in it. Big names like TCS, Infosys, and Wipro are seeing lots of interest and potential projects involving Gen AI. However, most Indian tech companies (except Accenture and TCS) haven't yet said how much money they're making from Gen AI. Investors will be looking for updates on how many clients are adopting it, how many pilot projects are turning into real business, and how much money it's bringing in. This new tech is also changing how they work, making their teams 'leaner' as AI handles more routine tasks.

**5. Are They Hiring? (Hiring & Salaries)**

The top five tech companies might hire 80,000-84,000 freshers next year, but some are hesitant to give exact numbers due to uncertainty. Updates on hiring plans and salary increases will be important, given the uncertain demand. For example, TCS delayed its usual April salary reviews last quarter, so any news on this front will be closely watched.

Overall, it's a mixed picture for Indian tech. While global challenges persist, the industry is adapting, especially with the rise of AI. Keep an eye on these five factors to understand where the sector is headed!

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