IT Services Q4 Earnings Preview

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.

Our IT services coverage universe should witness good median revenue growth in Q4 FY22E (up 3.7% constant currency QoQ and 25.4% YoY), while Ebit / profit after tax growth of 2.3% / 3.1% QoQ will be relatively muted due to an unseasonal dip in margin on continued supply pressures.

Revenue commentary should remain strong in Q4 FY22E, with no impact from the Russia-Ukraine war and inflation on demand.

While tier-II players would continue to outgrow tier-I companies, the gap should start shrinking in Q4 FY22. Revenue growth is expected to moderate QoQ in 4 QFY22 as a high base effect comes into play.

We expect the demand outlook to remain strong in FY23, although the initial guidance may bake in a potential impact on demand from elevated inflation in the US and Europe.

Click on the attachment to read the full report:

DISCLAIMER

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.

.

Leave a Comment