Indian IT Sector Q3 Earnings Preview - Fewer Furloughs, Residual Comeback: ICICI Securities
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Indian IT Sector Q3 Earnings Preview - Fewer Furloughs, Residual Comeback: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

In a seasonally soft quarter, we expect Indian IT to deliver strong sequential revenue growth led by:

  1. fewer-than-usual furloughs and
  2. residual recovery from Covid-19 decline over H1 CY20.

Further, product-related seasonality/large deal ramp-ups too should help in some cases.

Excluding Tata Consultancy Services Ltd./HCL Technologies Ltd. (partly), wage hikes are still due hinting at stability/upward bias in margins.

Q4 FY21/FY22 revenue outlook should be upped (versus September 2020) given the recent trend of captive takeovers/large deal wins.

Click on the attachment to read the full report:

ICICI Securities Technology Q3FY21 Preview.pdf

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