IT Services Sector Check - Buyback Season To Start? Prabhudas Lilladher’s Take
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IT Services Sector Check - Buyback Season To Start? Prabhudas Lilladher’s Take

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.

Prabhudas Lilladher Report

IT services companies have shown tremendous rigor over cash flow management in backdrop of Covid-19 pandemic in FY21.

Conversion of profit after tax to free cash flow has substantially improved in FY21 for Tier-I IT companies with average approximately 140% FCF/PAT in nine months-FY21 versus ~90% in FY20.

Cash and short term investments in balance sheet have risen by 25-65% and free cash flow to the firm by 24-158% for Tier-I IT services companies.

Onset of Covid-19 pandemic in Q4 FY20, led to drop in payout of most of the IT companies in FY20 as compared to their historical average payout.

Click on the attachment to read the full report:

Prabhudas Lilladher IT Serivces Sector Update.pdf

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