Motilal Oswal: IT Sector Q2 FY21 Result Preview - A Quarter Of Recovery
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Motilal Oswal: IT Sector Q2 FY21 Result Preview - A Quarter Of Recovery

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Motilal Oswal Report

Accenture Plc’s recent results and commentary noting traction in its outsourcing business (more relevant for Indian IT) corroborate an encouraging outlook for Indian IT companies.

As the quarter progressed, companies saw demand normalize as their deal pipelines largely returned to pre-Covid-19 levels, with discussions being revived for deferred deals as well.

In terms of verticals, healthcare, HiTech, banking financial services and insurance, and telecom continue to be largely stable.

However, some verticals (e.g., travel, energy, and manufacturing) are expected to see an elongated recovery.

For Q2 FY21, we expect aggregate revenue (U.S. dollar)/ revenue (Indian rupee)/ Ebit / Adjusted profit after tax to grow by 4%/3%/6%/7% QoQ.

Click on the attachment to read the full report:

Motilal Oswal IT Q2FY21 Result Preview.pdf

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