IT Sector Check - Another Standout Quarter; Another Upgrade: Motilal Oswal
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IT Sector Check - Another Standout Quarter; Another Upgrade: Motilal Oswal

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.

Motilal Oswal Report

The IT sector's performance over the past year has been outstanding; the sector has deservedly been re-rated - companies have paid out more than 85% of free cash flow to shareholders, had net-cash balance sheets, and commands return on equities of 25–40%.

The Q3 FY21 results season has thus far beaten expectations, with the IT companies delivering stellar results.

IT service companies delivered sequential growth of 3-5% in QoQ constant currency terms in Q3 FY21, aided by broad-based growth across geographies and verticals.

This was meaningfully ahead of our estimates, indicating an uptick in technology spends by corporates.

Click on the attachment to read the full report:

Motilal Oswal Technology Sector Update.pdf

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