Infosys, TCS, Wipro Update - Supply-Side Margin Headwinds Continue: 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.Despite Q3 FY22 being a seasonally weak quarter, Infosys Ltd. and Tata Consultancy Services Ltd. surprised while Wipro Ltd. was below street expectations (though within guidance range). Robust growth in Europe and optimism around the retail segment for TCS / Infosys were key positives. Growth in verticals such as financial services and manufacturing further aided company performance. Supply-side cost pressures and drop in utilisations led to margin contractions (10-60 basis points) in all three companies. This was partly offset by higher offshore effort mix and other cost optimisation initiatives.Attrition increased sharply, by 220-540 bps QoQ (last twelve months), with Infosys / Wipro being the most / least impacted. This is guided to stay elevated for at least another one to two quarters, and gradually flatten out thereafter. .Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Infosys, TCS, Wipro Update - Supply-Side Margin Headwinds Continue: ICICI Securities

Infosys, TCS, Wipro Update - Supply-Side Margin Headwinds Continue: ICICI Securities

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