KRChoksey: Resilience - A Key Theme Across India’s IT Sector Amid Pandemic Impact; Q2 To Witness Growth

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..KRChoksey Report.Covid-19 impacted sequential revenue growth on supply and demand side.Revenue for the IT firms under our coverage declined 2-7% QoQ in U.S. dollar terms (2-8% QoQ decline in constant currency terms), which was largely along expected lines with the notable exception of Persistent Systems Ltd., which saw a healthy 3.1% QoQ U.S. dollar revenue growth, and Infosys Ltd., which reported a lower-than-expected 2% constant currency QoQ revenue dip (2.4% QoQ U.S. dollar revenue decline) YoY U.S.dollar revenue dipped 3-8% for most firms except Persistent Systems (9.5% growth), Infosys and HCL Technologies Ltd. (both flat).Owing to the Covid-19 pandemic, around 20-25% of the revenue decline in Q1 FY21 was impacted by supply-side issues (time to shift employees to a work from home model), with the balance 75-80% due to demand side issues across verticals.All the IT firms under our coverage alluded to sequential revenue growth returning from Q2 FY21 onward, as major countries emerge from lockdown and restart their economies.The criticality of technology to most firms operations across verticals, along with further rise in digital and cloud spend post the pandemic is likely to drive growth recovery from Q2 onward.However, the situation remains fluid and the pandemic is far from over; thus, recovery needs to be viewed with a hint of caution..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint 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 brokerage and do not represent the views of BloombergQuint. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

KRChoksey: Resilience - A Key Theme Across India’s IT Sector Amid Pandemic Impact; Q2 To Witness Growth

KRChoksey: Resilience - A Key Theme Across India’s IT Sector Amid Pandemic Impact; Q2 To Witness Growth

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