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IT sector Q2 results preview: Dolat Capital

Dolat Capital has come with its September`12 quarterly earning estimates for IT sector. The research firm expects stocks in their coverage universe to report 3-5% sequential growth in constant currency revenues with some notable exceptions (Infy/Wipro – both consolidating their priorities).

October 09, 2012 / 18:00 IST
     
     
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    Dolat Capital has come with its September '12 quarterly earning estimates for IT sector. The research firm expects stocks in their coverage universe to report 3-5% sequential growth in constant currency revenues with some notable exceptions (Infy/Wipro – both consolidating their priorities) in wake of relative recovery in decision making cycle and thus the swift execution of the contracts/pipeline.

     

    Outlook for FY13: We believe that the companies in our coverage universe (except Infy and Wipro) would continue to clock systemic 3-4% CQGR (annual 14 - 17% in constant currency) over next 6-8 quarters supported by strong existing pipeline and incremental market share wins through offshoring leverage. We have built in INR/ USD realised rate of 54/53 in FY12/13E for our reported estimates which would ensure sustainable margins for FY13 and has inherent upside risk to our EPS estimates.

     

    Company

    Sales (Rs Mn)

    PAT (Rs mn)

    Q2FY13E

    QoQ %

    YoY %

    Q2FY13E

    QoQ %

    YoY %

    TCS

    157,470

    5.9

    35.4

    34,722

    5.8

    41

    Infosys

    101,295

    5.3

    25.1

    25,324

    10.6

    32.9

    Wipro

    108,222

    1.6

    19

    15,259

    2.3

    17.4

    HCL Tech

    62,272

    5.2

    33.9

    8,282

    -3

    66.7

    Mphasis

    14,060

    3.8

    7

    2,137

    2.4

    16.8

    TechMahindra

    16,497

    6.9

    23.7

    3,230

    -4.6

    34.4

    OFSS

    9,790

    3.5

    29.5

    3,193

    -13.2

    53

    Mindtree

    5,863

    4.1

    28.4

    651

    -5.6

    17.5

    Persistent

    3,177

    5.6

    33.4

    421

    1.2

    29.9

    KPITCummins

    5,639

    4.7

    73.5

    536

    4.4

    46.8

    first published: Oct 9, 2012 05:52 pm

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