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information technology | IST

Q2FY22 IT earnings: Expect strong show from Infosys, Mindtree; TCS managed attrition well, says Axis Securities

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Omkar Tanksale, senior research analyst at Axis Securities, on Monday, said that Mindtree and Infosys should see a strong Q2FY22 performance. He also believes TCS managed attrition level well and hence, he does not see the stock declining.

Omkar Tanksale, senior research analyst at Axis Securities, on Monday, said that Mindtree and Infosys should see a strong performance.
“Mindtree and Infosys are likely to perform strong. We are expecting around 5.5 percent of revenue growth in terms of Infosys and 6.5 percent of revenue growth in terms of Mindtree in constant currency (CC) terms, because they have strong deal wins and also management guidance. We are also expecting Infosys to raise its guidance by around 50 bps to 1 percent from the previous quarter that they have mentioned, because of the strong deal wins. They have done a ramp-up on those deal wins that they have borne in previous quarters,” Tanksale said, in an interview to CNBC-TV18.
Tata Consultancy Services (TCS) failed to meet street expectations with its second-quarter performance- the pace of deal wins has slowed and attrition has also seen a pick-up.
On TCS Q2FY22 numbers, he said, “The stock may consolidate but it still has an upside potential because the deal win momentum has reduced but it is not completely down, they have still managed to get in a resilient margin in the quarter, which was a big surprise.”
“However, everybody was expecting attrition level to rise, even from the global competitors because of the larger demand that is growing, but I believe that TCS executed well in terms of attrition,” said Tanksale.
For the entire interview, watch the video