Manik Taneja, Executive Director- IT Services at Axis Capital, shares insights into the financial performance of Indian IT companies in the second quarter of 2023. Taneja emphasizes that most IT companies have trimmed their guidance, except for LTI MindTree, Tata Elxsi, and HCL Tech, which have positive commentary for the second half of the year. He also highlights that tier-1 tech companies have managed to hold onto their margins quite well, although some of them have deferred or delayed wage implementations. Taneja points out that deal conversions have been weak, causing limited revenue growth despite signing large cost optimization deals. He discusses the challenges and leakage faced by the sector and provides an overview of Tech Mahindra’s performance, margins, and management changes. Lastly, Taneja shares Axis Capital’s negative view on the IT sector, with Tech Mahindra being the only positive-rated stock.