Technology Sector Q4 Earnings Preview - Expect A Mixed Bag: 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
As the sector approaches the fag end of recovery leg, we expect tier-I organic growth to moderate (versus H2 CY20) at approximately 1.3%-3.2% QoQ (constant currency).
Cross-currency tailwinds and inorganic contribution should boost reported growth to 2%-5% QoQ (U.S. dollar).
Except for a few, wage hikes will be the major margin headwind leading to Ebit margin contraction up to 220 basis points.
Given the low / negative base of FY21E, low- to mid-teen growth outlook for FY22E has already become the base case for the entire sector.
Given the limited causal relationship between headline deal wins and subsequent period growth recently, we will be cautious in interpreting it.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.