India IT Services - Wielding The Storm And Emerging As A Winner: IDBI Capital

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..IDBI Capital Report.Cloud, generative artificial intelligence and ancillary technologies remain multi decadal opportunity for IT companies. In addition, IT companies are seeing strong deal wins (top five averages up 2.4% QoQ and 3% YoY). Further, IT companies are indicating large deal wins to drive growth. However, we believe that conversion to revenues might slowdown due to lower shorter cycle deals and longer tenured large deals (leading to lower annual contract value). We believe, challenging macro conditions will affect the growth in near term (until H1 FY24E) before stabilising. Hence, we remain selective in terms of stocks considering valuation (companies near five-year average price-to-earning) and key client beneficiary. IT companies have multiple levers like lower lateral hiring, utilisation, pyramid and lower sub con. However, slowdown in revenues, travel and higher onsite cost to keep margin expansion under check..Anecdotal evidence of correlation of fortune 500 companies with Indian IT companiesOn analysing the revenue growth of key Fortune 500 enterprises and Indian IT companies, we found that the revenue growth of Indian IT companies in verticals like banking, financial services and insurance, retail and healthcare showed a strong correlation with the revenue growth of the key Fortune 500 companies present in those industries..Click on the attachment to read the full report:.Lenskart Raises $100 Million From Mumbai's ChrysCapital.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

India IT Services - Wielding The Storm And Emerging As A Winner: IDBI Capital

IT companies have multiple levers like lower lateral hiring, utilisation, pyramid and lower sub con.

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