Technology Sector Q4 Earnings Preview - Expect A Mixed Bag: ICICI Securities  
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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:

ICICI Securities Q4FY21 Technology Preview.pdf


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