NEW DELHI: Major IT firms are expected to post up to four per cent growth in dollar term revenue in the second quarter of the fiscal on the back of favourable currency movements and improved business demand, analysts say.

"We expect some uptick in revenue growth, with tier-I companies reporting 2-3.5 per cent sequential growth in revenues. Margins are expected to be largely stable," Citi said in its research note on IT Services and Software.

IT major Infosys would kickstart the quarterly earnings season from Friday followed by other sector majors -- Wipro, HCL Technologies and Tata Consultancy Services.

"We expect 2-4 per cent Q-o-Q dollar revenue growth with Infosys leading among large-caps on the back of volume growth recovery, cross-currency benefit and higher billing days," ICICI Securities said in its research report.

According to the estimates of brokerages, in rupee terms Infosys is likely to post a growth of 2.7 per cent Q-o-Q, while Wipro and TCS is likely to post a revenue increase of 3.5 per cent and 1.4 per cent respectively, Sharekhan said.

"Infosys will likely raise FY'10 guidance and markets are factoring in a return to growth and any disappointment could be a negative for the stock or sector," Citi noted.

Earnings of the IT firms, which are mainly exporters are likely to get strengthened as the rupee has remained largely flat against the USD during the September quarter.

source: TOI