IT Results Preview: Sustained Demand Tailwind To Drive Growth In Q1 - Motilal Oswal

IT Results Preview: Sustained Demand Tailwind To Drive Growth In Q1 - Motilal Oswal

An employee wearing a face mask has his temperature checked on arrival at the at the HCL Technologies Ltd. Jigani campus stands in Bengaluru, India. (Photographer: Samyukta Lakshmi/Bloomberg)

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Motilal Oswal Report

We expect a median dollar organic growth of 3.3% constant currency QoQ in Q1 FY22 for our IT Services coverage universe.

Despite a high base effect in H2 FY21, a strong demand environment and deal wins should result in continued strength across largecap and midcap IT companies (with a few exceptions).

We expect largecap IT companies to report organic revenue growth of 2.1-3.9% QoQ CC, while the same for midcaps (excluding Cyient Ltd., which will decline due to non-IT Data Lifecycle Management business seasonality) should have a wider band of 2.8-6.3% QoQ

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Motilal Oswal Q1FY22 Preview.pdf
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