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IT sector revenue to remain robust, strong margins to continue: Avendus Capital

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IT sector revenue to remain robust, strong margins to continue: Avendus Capital

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The earnings growth of the Indian IT sector is likely to continue going ahead on the back of strong business momentum, said Vaibhav Sanghavi, Co-CEO at Avendus Capital Alternate Strategies.

The earnings growth of the Indian IT sector is likely to continue going ahead on the back of strong business momentum, said Vaibhav Sanghavi, Co-CEO at Avendus Capital Alternate Strategies.

Speaking to CNBC-TV18, Sanghavi said, “We have seen some very brilliant deal wins for the frontline IT companies to an extent showing the cloud migration has been lesser-played than actually what it is and we think that revenue forecast for the next couple of years on the IT companies is likely to be robust.”
Looking at a business momentum, he added, it looked like this earnings uptake story along with the margin strength were likely to continue.
Meanwhile, the markets have shown buoyancy in the last quarter because of the robust foreign capital inflows.
“Our market buoyancy in the last quarter has been because of the fantastic FPI flows which we have seen. Apart from the most obvious reason which is the corporate earnings which have been better than expected,” Sanghavi said.
He expects the FPI inflows to continue going forward, but with a little lower intensity as compared to the previous quarter. The corporate earnings are also likely to continue to remain robust based on the positive corporate commentary, he said.
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