IT, Telecom Q4 Preview - Macroeconomic Conditions More Challenging; Slowing Down The Demand: Axis Securities

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Axis Securities Report.IT services sector is expected to report moderated growth in Q4 FY23 primarily on account of challenging times from world’s largest economies. IT automations in North America and Europe may show delayed spend or may face some spend cuts going ahead. We believe many of large enterprises will shift their focus on cost optimisations resulting in higher cost take out deals, vendor consolidation and lower discretionary spend. Banking, financial services and insurance, manufacturing, telecom, retail and hi tech verticals are expected to be the impacted by the slowdown, thus weakening FY24E growth momentum outlook. We expect IT services to report revenue growth in the range of 0.8%- 1.5% QoQ in U.S. dollar terms. In rupee terms, we expect the sector to deliver QoQ revenue growth of 1% to 8%. However margins are likely to expand marginally by 50-100 basis points aided by easing of supply-side constraints, lower attrition rate, lower onsite cost and moderated sub-con cost. In telecom sector, we expect Bharti Airtel Ltd. to post a healthy recovery in terms of curtailing losses and reporting a profit. Revenues are likely to grow by 6.5% QoQ, led by higher wireless revenues in India as well as in Africa. Operating margins are likely to witness marginal expansion due to lower commission costs and sales and marketing expenses..Click on the attachment to read the full report:.IT, Digital Services Q4 Preview - Growth Weakening To Continue Due To Recent Banking Crisis: Dolat Capital.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

IT, Telecom Q4 Preview - Macroeconomic Conditions More Challenging; Slowing Down The Demand: Axis Securities

IT services sector is expected to report moderated growth primarily on account of challenging times from world’s largest economies

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