IT Q4 Results Preview - A Forgettable Quarter; Expect Slow Recovery In FY25: ICICI Securities

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..ICICI Securities Report .We expect IT companies under our coverage to report soft QoQ constant currency revenue growth in Q4 FY24 due to slower recovery in key verticals of banking, financial services and insurance, retail and communication. There were negligible cross-currency tailwinds in Q4. We expect margins to see slight QoQ respite due to absence of furloughs and wage hikes versus Q3. Signs of improvement in IT spending in the near term remain elusive, with continued scrutiny over discretionary spends and focus on cost optimisation (also indicated by Accenture Plc. guidance cut for FY24). Though U.S. Fed’s recent indication of three rate cuts in CY24 may be a positive, an improvement in IT spending in FY25 is already built into our estimates. We now model a slower pace of recovery than envisaged earlier, and thus cut FY25/26E revenue growth estimates by 2-5% for our coverage companies on a weak FY24 exit..Click on the attachment to read the full report:.IT, Internet, BPO, KPO Q4 Preview - Sustained Furloughs, Flat Spending To Weigh On Growth: Dolat Capital.DISCLAIMERThis 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.

IT Q4 Results Preview - A Forgettable Quarter; Expect Slow Recovery In FY25: ICICI Securities

We expect TCS to lead the pack with 1.7% QoQ CC growth among tier-I

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