IT Q4 earnings growth to be a mixed bag: Angel
Angel Broking has come out with its results estimates on Information Technology sector for March FY12.
April 05, 2012 / 13:20 IST
Angel Broking has come out with its results estimates on Information Technology sector for March FY12. According to the research firm the global macro data is showing some signs of stability since the past couple of months, but still uncertainty regarding future global corporate profits has caused IT budgets to remain largely flat yoy for CY2012.
However, as per TPI's recent report, deal pipelines of IT companies were higher in the latter half of CY2011, but few project ramp ups are getting delayed, as indicated by the managements of selective companies such as HCL Tech and Infosys. Thus, we expect tier-I IT companies to replicate growth of above 16% in FY2012. Further, we expect moderation in volumes to sub 15% only in FY2013. However, in INR terms, we expect growth to be higher considering USD/INR assumption for FY2013 to be at 49.0, following a sharp ~11% depreciation against USD over the past couple of quarters.We remain cautiously optimistic on the IT sector, as on one hand global uncertainties are prevailing along with concerns regarding the spending pattern for clients
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