Phaneesh Murthy, chief executive officer of iGate Corp., had indicated in January that growth in the March quarter would be subdued for the iGate-Patni combine. However, he had said there would be some growth compared with the December quarter. While iGate is yet to announce results for the March quarter, Patni Computer Systems Ltd has reported weak results for the period, with revenue declining by 5% in dollar terms compared with the December quarter.

There is an outside chance that iGate’s results may surprise on the positive side, if the company has managed to reallocate some of Patni’s clients and revenue into its own books. But note that iGate’s stand-alone revenue will have to rise by around 15% quarter-on-quarter, for consolidated revenue to remain flat at December quarter levels.

Thankfully, expectations for the March quarter are already running low, after Infosys Ltd’s muted guidance and Tata Consultancy Services Ltd’s recent commentary that growth would be only slightly better than flattish. But if any of the large caps report a drop in revenue such as Patni or if Infosys negatively surprises with its guidance, IT stocks will correct by quite a margin.

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