Technology Sector Q1 Earnings Preview  - Reversion Towards Pre-Covid-19 Growth: ICICI Securities

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Technology Sector Q1 Earnings Preview - Reversion Towards Pre-Covid-19 Growth: ICICI Securities

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 Securities Report

We expect sequential revenue growth to approach pre-Covid-19 levels in a typical June quarter. Q1 is seasonally strong.

In conjunction with some base shift, the tier-I companies should report 1.4%-4.0% QoQ growth (organic, constant currency), organic growth in tier-II companies should be broadly in the similar range.

Covid-19 second wave impact on delivery will be limited depending on delivery location and fungibility of the bench resources.

Full/partial wage hikes will be a key margin headwind.

Further,

  1. high utilisations,

  2. sharp spike in attrition after a lull, and

  3. bottlenecks related to campus hiring this time – should translate into supply-side cost pressures.

Click on the attachment to read the full report:

ICICI Securities Technology Q1FY22 Preview.pdf

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