IT Sector Check - Commentary Points To A Weaker-Than-Expected December Quarter: Nirmal Bang

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. .Nirmal Bang Report.Over the last few days, we have had the opportunity to listen to HCL Tech Ltd. (at its U.S. investor day), Cognizant (at an investor conference) besides a chance to interact with Infosys Ltd. investor relations team. HCL Tech has indicated that growth for FY23 will come at the lower end of the range that it had indicated post its Q2 FY23 results (update) due to higher-than-expected furloughs (highlighted banking, financial services and insurance and hi-tech being problem areas). We do expect this to be an industry-wide problem and not an HCL Tech specific one. While there was no discussion on specific numbers by either Infosys or Cognizant, we get the sense that December 2022 and possibly March 2023 are likely going to be growth challenged quarters for the industry; may be a bit more than earlier anticipated. HCL Tech management commentary also highlighted another problem that we foresee in FY24 – pricing. It hinted that price increases are more selective now than they were six-nine months back. .Click on the attachment to read the full report:.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.

IT Sector Check - Commentary Points To A Weaker-Than-Expected December Quarter: Nirmal Bang

We continue to advocate an únderweight' stance on the IT sector and use the recent rally to cut positions if one is overweight.

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