IT Services, Internet, BPO, KPO Q1 Preview- Seasonality Led Growth; Hike, Visa Costs To Hit OPM: Dolat Capital

"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..Dolat Capital Report.For Q1FY25, we anticipate revenue growth of -2% to +2.7% QoQ in constant currency terms amongst tier-I IT companies and +0.6% to +5.1% CC growth for tier-II companies, primarily driven by a seasonally strong quarter. Ebit margin is expected to decline sequentially for most IT companies due to wage hike cycle and higher visa costs. Operating profit margin is expected to see QoQ movement of -130 bps to +80 bps in Q1 FY25E as some players may see wage hike hit, along with more than usual seasonal impact of visa fees. Our interactions with industry participants indicate pain in BFSI and hi-tech verticals seems to be bottoming out. It is worth noting that despite robust deal wins and improving book-to-bill ratio, revenue conversion remains subdued owing to client hesitancy on tech spends amidst macro uncertainties. Nevertheless, we will carefully watch-out for any uptick in key lead indicators such as-headcount additions (Naukri June-24 Job speak index down 5% QoQ), deal pipeline revenue conversion timeline and meaningful commentary for recovery in discretionary spend. At present, we maintain a ‘Neutral’ stance for the near term and our preference is for large caps given lower risk to estimates/PER..Click on the attachment to read the full report:.Automobiles Q1 Results Preview - FY25 To Be A Healthy Quarter; Input Cost Pressures Surface: Motilal Oswal.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 Services, Internet, BPO, KPO Q1 Preview- Seasonality Led Growth; Hike, Visa Costs To Hit OPM: Dolat Capital

Most IT services companies witnessed robust order-book in FY24, along with improved book-to-bill ratio

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IT Services, Internet, BPO, KPO Q1 Preview- Seasonality Led Growth; Hike, Visa Costs To Hit OPM: Dolat Capital

Most IT services companies witnessed robust order-book in FY24, along with improved book-to-bill ratio

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