KRChoksey: IT Sector Q2 FY21 Post Earnings Review -Resilience, A Key Theme Across-The-Board Amid Pandemic Impact
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KRChoksey: IT Sector Q2 FY21 Post Earnings Review -Resilience, A Key Theme Across-The-Board Amid Pandemic Impact

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.

KRChoksey Report

Revenue for the IT firms under our coverage rose 3-7% QoQ in U.S. dollar terms (1-7% QoQ rise in constant currency terms), with most companies’ revenue ahead of our estimates led by a rapid rebound in client IT spend, mainly towards digital transformation initiatives particularly movement of workloads to cloud, a trend that seems to have gotten accelerated by the Covid-19 pandemic.

Ebit margin performance for IT firms in our coverage universe was impressive, with all bar Wipro Ltd. clocking better-than-expected performance (100-440 basis points QoQ margin improvement), while for Wipro there was a marginal 14 basis points QoQ improvement.

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KRChoksey IT Q2FY21 Post Earning Review.pdf

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