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.
KRChoksey Research Report
Indian IT services' growth outlook remains robust, based on -
increasing velocity of digital transformation/shift to cloud,
strong annual contract value as large deals are broken into mid-sized deals,
improvement in deal pipeline,
accelerated fresher hiring, and
improving alignment/investment in the hyperscalers/software-as-a-system ecosystem.
Tier-I technology companies are expected to deliver up 2.0%-4.0% constant currency QoQ and mid-tier technology companies are expected to post a better constant currency QoQ (up 4.0-7.0% QoQ) both organically.
The margin during the quarter is expected to contract on a sequential basis, largely impacted by supply side challenges, lower utilisation and higher retention cost.
Our thesis suggests that the absolute return is likely to get impacted by the rising cost of capital and geopolitical risk premium, inflationary factors, and the lead-lag cycle of cost and pricing.
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