JOIN USIT firms in for robust results
Motilal Oswal Securities said: “The quarter ending March is seasonally the weakest for the industry, as clients usually finalise their budget spends for the next year during this period.”
Analysts are of the view that demand environment remains strong and pick-up in sequential growth rates will resume from first quarter of FY12. Of the IT companies, HCL Technology is expected to lag its peers due to higher exposure to Japan and ongoing BPO restructuring, while Wipro may continue to lag peers marginally for the next few quarters as the organisation settles under the new leadership, they added.
Edelweiss Capital in its letter to investors noted that for the fourth quarter of 2011, volume growth is likely to remain modest at 4.1-5.2 per cent q-o-q for Tier-I companies, due to ongoing IT spend by clients, along with reporting a decent performance on the EBIT margin front. "Within technology, healthy top line growth is expected to be supported by strong demand and momentum in deal sign ups," it said.
Even as market players are bullish on IT bellwether Infosys Technology, commenting that
the sector would report earnings growth of 19 per cent, led largely by the IT major who is the first among its peers to announce the fourth quarter and year ended numbers on April 15, 2011.