The July-September quarterly earnings of the Information Technology (IT) companies could surprise the street with robust growth aided by negligible supply-side impact. Market participants are expecting stable margin growth for IT majors that have a strong deal pipeline. In the pandemic struck world, analysts have been expecting IT companies to be better placed owing to negligible impact on business activities and accelerated IT spends by firms across the globe. IT companies like Accenture and the Noida-based HCL Technologies have already spilled the beans highlighting strong demand, which is trimming the duration of IT transformation across sectors.
Analysts expect revenue growth to be led by — reasonable demand trends across key large verticals, like financial services, telecom and even insurance. “Revenues on yoy comparison