ADVERTISEMENT

IT Services Q2 Earnings Preview - Topline Growth Strong, Lower Utilisation Impacts Margin: ICICI Direct

IT Services Q2 Earnings Preview - Topline Growth Strong, Lower Utilisation Impacts Margin: ICICI Direct

<div class="paragraphs"><p>Employees work at the office. (Photographer: Anindito Mukherjee/Bloomberg)</p></div>
Employees work at the office. (Photographer: Anindito Mukherjee/Bloomberg)

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

IT companies are expected to continue their revenue growth momentum in Q2, which is a reflection of strong deal signing momentum.

We expect banking, financial services and insurance, retail, manufacturing, hi tech and life-science to drive revenues in the quarter.

On the currency side, we expect some headwinds from unfavorable cross currency movements.

Since demand continued to be strong in IT companies, the supply side crunch is expected to have an impact on margins.

Since companies accelerate fresher hirings to cater to increasing demand, utilisation of companies is expected to take some hit while subcontracting costs are expected to accelerate, which will have an impact on margins.

Click on the attachment to read the full report:

ICICI Direct IT Q2FY22 Earnings Preview.pdf

DISCLAIMER

This 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.