Indian IT Sector Q3 Earnings Preview - Fewer Furloughs, Residual Comeback: ICICI Securities
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ICICI Securities Report
In a seasonally soft quarter, we expect Indian IT to deliver strong sequential revenue growth led by:
- fewer-than-usual furloughs and
- 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.
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