IT Services Q2 Earnings Preview - Healthy Growth To Continue: Dolat Capital
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Dolat Capital Report
Q2 being the seasonally best quarter with most number of working days (also least impacted from Covid-19) would mean very strong growth for IT services peers wherein we expect tier I to deliver 4-6% sequential growth and tier II to grow in 6-9% range.
Companies may have some pressure on profitability on wage hikes, attrition, wage inflation, cost normalisation and so on; however a large part of these impact are likely to be mitigated by strong operating leverage and thus operating profit margin decline would not be significant and thus not an area of concern.
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