<ul><li>Citi, a brokerage firm, believes that Indian IT companies like TCS and Infosys will face challenges in meeting consensus estimates for the financial year 2024.</li><li>Meeting these estimates would require significant operating profit (EBIT) growth, ranging from 5% to 78%, which Citi considers difficult in a slow-growth environment, weaker seasonality, and pending wage hikes.</li><li>Seasonal factors, such as extended holidays in December and wage hikes in the March quarter, traditionally impact IT companies' margin performance.</li><li>Citi also sees challenges in meeting consensus estimates for the financial year 2025, with only Infosys and HCLTech rated as "neutral" in their coverage.</li></ul>

Indian IT companies will find it tough to meet operating profit consensus estimates for FY24, Citi says

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