IT Q4 Results Preview - Tighter Budgets, Lower Discretionary Spend Key Dampeners: IDBI Capital

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..IDBI Capital Report.Weak macro, lower discretionary spend and tighter budget to impact revenues of IT companies in Q4 FY24E and beyond. Longer tenured deal led by cost efficiency deals, delayed decision making, slower ramp up in deals and slower deal conversion are key commentary by IT companies. This commentary cast doubt of a significant recovery in H2 FY25E and overall outlook for FY25E. The only near term trigger is generative AI. For Q4 FY24E, in terms of large caps we expect dollar revenue growth in the range of -1.3% - +1.5% QoQ and cross currency tailwind of average 36 basis points. Among mid-caps we expect -1.1 to +2% QoQ growth. In terms of margins, we expect it to improve across companies (except Zensar Technologies Ltd., LTIMindtree Ltd. and HCLTech Ltd.) due to absence of furloughs and higher utilization. We expect Coforge Ltd., Newgen Software Technologies Ltd. and Birlasoft Ltd. to report healthy numbers. Newgen and Sonata Software Ltd. are our top picks..Click on the attachment to read the full report:.IT Q4 Results Preview - Weak FY24 Exit, A Weak FY25 Start Could Pressure Consensus Estimates: Nirmal Bang.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 - Tighter Budgets, Lower Discretionary Spend Key Dampeners: IDBI Capital

We expect TCS and Wipro margins to report 52 bps and 40 bps increase due to absence of furloughs and higher utilisation.

Choose a plan