Technology Sector Q1 Earnings Preview - Reversion Towards Pre-Covid-19 Growth: ICICI Securities
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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.
sharp spike in attrition after a lull, and
bottlenecks related to campus hiring this time – should translate into supply-side cost pressures.
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