Sector Performance - Information Technology

Information technology: Strong sequential growth in revenue

• The average sequential revenue of the sector is estimated to grow at 6-10% in Q4FY2006 and the growth rate is marginally lower than that in the previous quarter but higher than the market's expectation at the beginning of the quarter. The average top line is expected to be driven by the 7-11% growth in the volumes (a higher sequential volume growth as Q3 has less number of working days) during the quarter.
• The appreciation of the rupee against all the other major currencies would adversely affect the sequential growth in the average revenue.
• Expect the revenue of Satyam Computer, HCL Technologies and Wipro to record a strong sequential growth of 8.5%, 9.6% and 10.2% respectively.