IT Sector Update - A Wake Up Call Against Unrealistic Expectations: 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.Our anti-consensus sector stance that steady state growth/margins are unlikely to be higher versus pre-Covid-19 echoed in Q4 FY21 performance/outlook. As consensus rationalised lofty expectations to an extent, sector witnessed downgrades - notwithstanding the sharp Indian rupee depreciation.Despite the continued euphoria, incremental cloud sales at hyper-scalars remained range bound. The sector continued reporting strong deal wins. However, this metric per se is noticed to be incomplete with no strong causal relationship on future growth. In FY21, banking and financial services / healthcare witnessed ‘reactive’ (to Covid crisis) spends. Rebalancing of these spends in FY22 and geographic de-risking by clients pose key risks to outlook. .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.

IT Sector Update - A Wake Up Call Against Unrealistic Expectations: ICICI Securities

IT Sector Update - A Wake Up Call Against Unrealistic Expectations: ICICI Securities

Choose a plan