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.
Dolat Capital Report
We expect IT services peers to deliver healthy growth in Q3 despite it being a seasonally weak quarter. The growth is driven by momentum across verticals backed by strong trailing twelve months total contract value wins performance (average 18% YoY growth for tier-I).
For IT services peers we expect tier-I to deliver 3.2-6.5% sequential growth while tier-II are expected to grow in the 3.6-6.0% range in constant currency terms.
Companies may have some pressure on the profitability side: wage hikes/inflation, attrition, wage, cost normalisation, etc. However, a part of these impacts are likely to be mitigated by operating leverage, and thus operating profit margin decline would not be significant.
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