Q2FY22 Result Preview - Information Technology - ICICI Direct

IT companies are expected to continue their revenue growth momentum in Q2, which is a reflection of strong deal signing momentum. We expect BFSI, retail, manufacturing, hi tech and life-science to drive revenues in the quarter. On the currency side, we expect some headwinds from unfavourable cross currency movements. Since demand continued to be strong in IT companies, the supply side crunch is expected to have an impact on margins. Since companies accelerate fresher hirings to cater to increasing demand, utilisation of companies is expected to take some hit while subcontracting costs are expected to accelerate, which will have an impact on margins.

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Source : Equity Bulls

Keywords

Q2FY22 ResultPreview InformationTechnology ICICISecurities @ICICI_Direct