IT Sector Q3 Results Preview - Growth, Valuations ‘ Normalising: HDFC Securities

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. .HDFC Securities Institutional Equities.The IT sector is expected to post a soft quarter, impacted by Q3 seasonality and worsening macro. The elements of macro volatility is resulting in growth moderating towards pre-Covid even as long-term drivers are unchanged. Recently, HCL Tech Ltd. tweaked its FY23E guidance to the lower end, but Accenture maintained its FY23E growth guidance (outsourcing-led). In a seasonally soft quarter with higher impact of furlough, we expect tier-I IT to post within 0.6% to 3.1% QoQ constant currency revenue growth, margin expansion of ~60 basis points QoQ and profit after tax growth of ~5% QoQ. We have factored in revenue growth decelerating from 13.5% CC in FY23E to 8.5% for FY24E and FY25E. Concurrently, the profit trajectory is expected to improve ahead in FY24E (versus FY23E) as the supply side crunch eases with demand moderating. .Click on the attachment to read the full report:.IT Services Q3 Results Preview - Seasonality-Led Slower Demand To Hurt Growth: Motilal Oswal.IT Services Q3 Results Preview - Seasonally A Weak Quarter: IDBI Capital.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 Q3 Results Preview - Growth, Valuations ‘ Normalising: HDFC Securities

The IT sector is expected to post a soft quarter, impacted by Q3 seasonality and worsening macro.

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