IT’s Big 5 Ex­pected to Re­port Bet­ter Num­bers in Re Terms

Dol­lar-de­nom­i­nated rev­enue and profit growth is, how­ever, seen tepid at 1-2%, ac­cord­ing to av­er­age es­ti­mate of 6 bro­ker­ages and ETIG

The Economic Times - - Smart -

Tech­nolo­gies, and Tech Mahin­dra.

The se­quen­tial growth in the dol­lar­de­nom­i­nat­e­drev­enue­si­s­ex­pect­ed­tobe tepid at 1-2% con­sid­er­ing the sea­sonal weak­ness in the de­mand as clients of these com­pa­nies fi­nalise IT bud­gets for the year, and un­favourable cross cur­rency move­ments. The­p­ound­fell5.5%on av­er­age against the dol­lar in the March 2016 quar­ter on a se­quen­tial ba­sis. When IT play­ers trans­late rev­enue in pounds into dol­lars for re­port­ing pur­pose, they take a hit in re­al­i­sa­tion due to pound’s weak­ness.

The op­er­at­ing mar­gin is ex­pected to stay more or less sta­ble at 23.1% com­pared to 23.3% in the De­cem­ber quar­ter.

Gart­ner, a tech­nol­ogy re­search firm, last week re­duced the growth forecast for IT ser­vices to 2.1% from its ear­lier

An­a­lysts ex­pect In­fosys to guide for 1012% rev­enue growth in the dol­lar terms for FY17

es­ti­mate of 3.1% in­crease for 2016. Against the back­drop, the man­age­ment com­men­tary of IT ex­porters dur­ing the re­sults will be crit­i­cal.

An­a­lysts ex­pect In­fosys to guide for 10-12% rev­enue growth in the dol­lar terms­forFY17.TCShas­been­re­port­ing low­erthanex­pect­ed­growth­forthep­ast few quar­ters. Its out­look on em­ployee ad­di­tion and mo­men­tum in sign­ing new large con­tracts will help in shap­ing up the fu­ture growth ex­pec­ta­tions.

Source: Es­ti­mates by bro­ker­ages and ETIG

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.