Software & Services
Software & Services
SECTOR | 09 Apr 2019
HDFC Securities
Among tier-1 IT, TCS, INFY, HCLT expected to lead growth while Wipro and TechM (enterprise) to post soft quarter. Among tier-2 IT, Sonata, Intellect and Majesco are expected to lead sequential growth (weak nos. by Cyient, Persistent). IT sectors 4Q growth is expected to accelerate (vs. 3Q) and growth rates between tier-1 IT and tier-2 IT is expected to converge. Revenue growth for the sector (coverage universe) is estimated to grow 2.5/8.1% QoQ/YoY and 8.5% YoY in FY19. Within the sector, tier-1 IT is expected to post 2.5/7.8% QoQ/YoY (7.8% YoY in FY19) and tier-2 IT expected to post 2.1/10.2% QoQ/YoY (13.7% YoY in FY19).
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