IT sector results preview for Q3FY12: PLilladher
Motilal Oswal has come with its December quarterly earning estimates for Information Technology sector.
January 11, 2012 / 17:01 IST
Prabhudas Lilladher has come with its December quarterly earning estimates for Information Technology sector. The research firm continue to remain positive on the outlook of Tier-1 Indian IT Services fuelled by four factors 1) No cut in IT budget 2) Increased offshoring 3) gaining market share 4) spend from first-time outsourcers
Prabhudas Lilladher research report on Information Technology sector:We continue to remain positive on the outlook of Tier-1 Indian IT Services fuelled by four factors 1) No cut in IT budget 2) Increased offshoring 3) gaining market share 4) spend from first-time outsourcers. However, we remain Neutral on Tier-2 IT Services companies due to high client, verticals and geography concentration. According to the management, early discussions with clients are not giving any warning signs on IT spends. We expect volume growth to remain moderate at 3-5% in the current quarter due to seasonality effect (2% lower working days). We expect continued weakness in Europe, but the US growth remains on track. Our channel checks and management
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