IT Sector update: Decoding the Q2 FY25 Results and Outlook

1. 

   Sundararajan Srinivasan

   November 10, 2024 at 11:56 am

   Thx. In specific the PE ratio graph was very useful.
   Gen AI is the buzz word globally, and so Indian IT talking of it is in-line with that. (Nobody knows tomorrow, but mindshare of being current is very important). I see that coming clearly from your analysis.

   Couple of observations/ inputs:
   It will be good, if you could include Accenture and Cognizant (I can’t think of others who are in the same class of boat) in your comparison. (There will be a need for some dollarization of the amounts to be compared.) It will give us an idea if the Indian biggies companies are picking steam better/ in-line/ below.

   Here are some things to ponder about/ observe:
   The IT majors now hire campus grads in two or three starting point salaries. So a survey of what percentage is going in the higher level – will be a good indicator for knowing how heavily are they in DIgital/ AI/ Gen AI (or whatever tomorrow’s high value buzz word will be).

   With the new Trump administration coming in, I don’t think anyone at this stage can predict two big ticket items (which can have a bearing – either for the business/ or the margins):
   a. Immigration/ H1B visa stance [An analysis of onsite HC, onsite revenue analysis could give some insight]
   b. Import duties.
   1. 

      Sudharsan S

      November 10, 2024 at 5:39 pm

      Thanks for the additional inputs sir, We will include those points in the Q3FY25 results and outlook.

      Thanks,
      Sudharsan
2. 

   Balaji Venkataraman

   November 10, 2024 at 7:06 am

   Hi Sudarsan,
   Very well penned analysis. Thanks.
   1. 

      Sudharsan S

      November 10, 2024 at 9:35 am

      Thank you sir.
3. 

   hari.stirling

   November 10, 2024 at 4:52 am

   Nice and timely analysis!
   1. 

      Sudharsan S

      November 10, 2024 at 9:35 am

      Thank you sir.
4. 

   ak

   November 9, 2024 at 5:14 pm

   Thank you for this post.

   How would you suggest to “ride this wave” if one doesn’t want to go about picking individual stocks? Via IT/tech Sector funds (I think Prime fund has one or two; would have more reports/recommendations on it)? Or a “generic” thematic fund e.g. some “Opportunities” fund or so? And it’d strictly be “riding” the wave (as is with specific sectors) or it can be a long term play and if then how?

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