Tata Consultancy Services (TCS) has stated that it does not see any weakening of demand. This was in reply to a CLSA brokerage's report downgrading the IT services companies and the sector.
"Clients continue to fund new projects and ramp-ups are proceeding smoothly. A 2-per cent GDP growth versus a 3.6-per cent growth has little impact on our US-based clients who are mostly global corporations getting half or more of their revenues and all of their growth from overseas markets," shared a TCS investor relation personnel.
CLSA in a report has downgraded TCS and Infosys Technologies to underperform. They also downgraded the sector from neutral to underweight and said that Indian IT holds little promise of sustainable absolute returns hereon.
CLSA also pointed out that the visa issue is hurting Indian companies.
