Analysts at Investec Securities, who have increased their earnings estimates by 13 per cent for FY19, say that the company has been able to consistently bag large deals allowing it to improve its revenue growth trajectory every quarter since Q3FY17. Given the consistent delivery, diversified profile as well as no presence in slow-growing legacy business and industry-leading growth, brokerages expect premium valuations (current P/E at 21 times) for the company to continue.
The company has indicated that domain knowledge and micro-vertical focus will help it win large deals. The financial services space grew a strong 11 per cent on a sequential basis in the quarter. The other area of growth has been digital services, which contributes 34 per cent to the company’s sales. This segment has grown at 45 per cent year-on-year, while overall growth for the June quarter came in at 23 per cent. Growth in this space is expected to continue with traction coming from the insurance space.
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