IT companies well positioned for strong Q3 growth on healthy deal momentum

Deal ramp-up, healthy pipeline and cost tailwinds to offset seasonally weak quarter

Indian information technology (IT) companies are expected to post another quarter of healthy growth despite the October-December period being seasonally soft and worries around intermittent lockdowns globally. Analysts expect the top companies to sustain healthy growth in the financial year 2021-22, as well.

Continued deal momentum, the ramp-up of large deals won during the first half of the current financial year, and cross-currency benefits are likely to drive earnings of technology companies in the recently concluded December 2020 quarter (Q3), say analysts.

“We estimate 2.5-3.5 per cent QoQ (quarter-on-quarter) dollar revenue growth for the top five players in reported terms, including a