TCS, Infosys, Wipro to report strong quarterly revenue

Information technology spending this year will grow faster than previously forecast, according to the research firm Gartner, which bodes well for top Indian exporters Tata Consultancy Services, Infosys and Wipro. Gartner forecast the global IT market will expand 7.1 percent this year, up from its previous projection of 5.6 percent growth.

"Infosys' earnings should be better than they guided and their outlook may improve further. An increase in IT spending is expected this year and that should provide some comfort," said K.K. Mital, Head of Portfolio Management at Globe Capital.

Growing competition has pushed up wage costs for Indian companies with annual salaries rising by 10-15 percent for most players in the sector, denting their profit margins.

"Tata Consultancy and Infosys are expected to see profit growth of 16 to 24 percent respectively for their fiscal first quarter. Third-ranked Wipro could post a marginal fall in net profit after a recent management restructuring triggered caution among its clients", analysts said.

Wipro reorganized its IT outsourcing business in February, three weeks after it surprised markets by removing the joint chiefs of the business. Shares in Infosys, which is valued at about $38 billion, have lost 13 percent this year and Wipro shares have fallen 11.8 percent. Tata Consultancy shares have gained 2.6 percent versus a 9.4 percent fall in the sector index and a 6.6 percent fall in the wider index.