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.
Q1 is the strongest quarter for IT companies. However, current macro conditions are expected to impact revenue growth of IT companies. Banking, financial services and insurance, retail, communication and hi tech are witnessing higher stress.
This coupled with slowdown in discretionary spend, project ramp downs and lower conversion of total contract value to annual contract value is impacting near term growth. We expect even those verticals not impacted will have cautious outlook.
Hence, for Q1 FY24E we expect large caps to register dollar revenue in the range of flat to -2% QoQ trend aided by 0-60 basis points cross currency tailwind.
Among mid caps we expect -2% to +3% QoQ growth. We expect Coforge Ltd. and Zensar Technologies Ltd. to outperform tier- growth.
Further, in terms of margins we expect tier-I to register flat to -118 bps decline in margins mainly led by wage hike and lower revenue growth. Infosys Ltd. and Tata Consultancy Services Ltd. are our top picks.
Click on the attachment to read the full report:
DISCLAIMER
This 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.
