According to an internal report by Kotak Institutional Equities referencing the management of India's second largest firm Infosys, the general demand environment for IT companies remains dismal.

However, Infosys says that it has recently secured major transactions will create a solid growth foundation for FY25.

With the exception of a few large deal closing, the demand climate has not changed much since Infosys' June quarter results, as certain pockets in banking and financial services, as well as discretionary spending in retail, remain under pressure.

Cards, mortgages, capital markets and investment banking in financial services, discretionary retail, and sectors of telecom and hi-tech are among the under-pressure areas. These challenges are reflected in FY24 sales growth projection of 1-3.5 percent.

According to reports, it recently received Deputy CFO Jayesh Sanghrajka as well as investor relations head and financial controller Sandeep Mahindroo. The three megadeals (Danske, Liberty Global, and an unidentified $2 billion extension) will be completed in the next months, providing a solid foundation for FY25.

According to the note by analysts Kawaljeet Saluja, Sathishkumar S, and Vamshi Krishna, one of the contributing causes for lowering the earlier guidance was a delay in transaction closes, which were not due to client decision-making pace but were attributed to additional regulatory approvals.

Over the last few months, the IT sector has seen a surge in major transactions. This is primarily due to clients reducing expenses by monetizing captives and internal assets in order to focus on core operations.

This comes just weeks after Infosys signed a $1.6 billion AI and cloud-related deal with telecom and communications giant Liberty Global in August for an initial five-year partnership.

The contract's worth might rise to $2.5 billion if it is extended for a further eight years, making it one of the largest deals signed by Infosys in its four-decade history.