IT, Telecom Q4 Result Preview - Uncertainty Still Persists, Recovery Expected: Axis 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..Axis Securities Report.IT services sector is expected to report muted growth in Q4 FY24 primarily on account of a weaker discretionary spend due to challenging times in the world’s largest economies. IT automation in North America may show delayed spending or spending cuts moving forward. We believe many large enterprises will shift their focus on cost optimizations, resulting in higher cost take-out deals, vendor consolidation, and lower discretionary spend. However, easing out supply side constraints along with lower sub-con cost may lead to margin recovery. Verticals such as banking, financial services and insurance, manufacturing, telecom, retail, and hi-tech are expected to be impacted by the slowdown, thereby weakening FY24 growth momentum. We also believe that the dovish stance taken by the Federal Reserve and expected cuts in the primary rates may infuse some liquidity in the markets, which will support recovery. Moreover, deal wins for the quarter are likely to remain steady, aided by strong demand for newer technologies like generative AI, machine learning, cloud transformation, and digital transformations. Our medium term to long-term view on the IT sector still remains constructive and we expect quicker recovery in the second half of the FY25E..Click on the attachment to read the full report:.Consumer Discretionary Q4 Results Preview- Alco-Bev Offer Respite, Paints, QSR Numbers To Be Weak: 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, Telecom Q4 Result Preview - Uncertainty Still Persists, Recovery Expected: Axis Securities

We expect IT services to report revenue growth in the range of -2%-1.0% QoQ in the USD terms

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