IT Services June’11 Preview: Expect broad based revenue growth ::Emkay

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IT Services June’11 Preview: Expect broad based revenue growth 

Good all round growth across the board

We expect a 2.6-6.2% QoQ US$ revenue growth ( with ~70-100 bps cross currency aid)  for our Tier I IT coverage universe with TCS leading the pack yet again while Wipro reporting the weakest QoQ revenue growth and soothing investor nerves after the weak macro news flow in the recent weeks. We expect Infosys to report revenues at US$ 1,677 mn (+4.7% QoQ, ahead of co’s revenue guidance of ~2.6-3.6% QoQ growth) and Wipro to report revenues at US$ 1,436 mn(+2.6% QoQ ahead of co guidance of -0.4-+1.6% QoQ growth helped in part by consolidation of the SAIC acquisition for 1 month), however expect investor focus to remain on progress with the ongoing internal restructuring at both the companies.  We expect strong revenue performance from our Tier II coverage universe as well (albeit for Patni) as we build in a 2.6-7.3% sequential US$ revenue growth with Persistent leading the pack.