I.T. Sector Q3 Earnings Preview - Healthy Topline Growth Despite Seasonally Weak Quarter: ICICI Direct
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I.T. Sector Q3 Earnings Preview - Healthy Topline Growth Despite Seasonally Weak Quarter: ICICI Direct

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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 Direct Report

Normally, this quarter is seasonally weak due to furloughs. However, this year we believe there will be an aberration to this trend.

We expect companies to report healthy revenue growth in this quarter led by lower furloughs, improvement in demand post Covid-19 and ramp up of deals won in the previous quarters.

This, coupled with cross currency tailwind, will further boost revenue growth in the quarter.

The companies are also seeing a demand tailwind in terms of cost takeout by clients (led by higher offshoring and automation), vendor consolidation opportunities, captive carve outs and traction in cloud and customer experience that could further propel demand in coming quarters.

Click on the attachment to read the full report:

ICICI Direct IT Q3FY21 Result Preview.pdf

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