NDTV Profit'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 NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Nirmal Bang Report
Capgemini SE announced its Q1 CY24 results on April 30 2024 with topline down by 3.3% YoY in constant currency terms. While organic growth was (-)3.6%, it was in line with expectations of a negative Q1 CY24 due to the challenging demand environment coupled with traditional seasonality. It has called this a trough quarter with gradual improvement in growth and a mid-to-high single digit exit rate for Q4 CY24.
Revenue guidance for CY24 remains unchanged with organic growth estimated at +1% at the midpoint, which is a deceleration versus CY23 (3.9% growth). It has also left the Ebit margin guidance of 13.3-13.6% unchanged for CY24.
The lower end of the 0-3% guidance assumes a very low pick-up in discretionary spending while the upper end assumes that discretionary spending by customers is almost back to normal. Under the current macro environment of “higher for longer fed funds rate” and uncertainty around likely outcome of the U.S. elections, we believe discretionary spending coming back to normal looks highly unlikely and hence believe that Capgemini will possibly land up at the lower end of its guidance.
While Q1 CY24 YoY growth started in the negative, Q2 is also expected to be soft without indicating whether it will be a mildly negative. The North American market according to Capgemini is slowly turning around.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit 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 NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
