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MOSL: TECHNOLOGY 4QFY17 PREVIEW-Can growth recover next fiscal?-Amid some H-1B reprieve and BFSI hopes, INR appreciates

​Technology 4QFY17 PREVIEW: Can growth recover next fiscal?; Amid some H-1B reprieve and BFSI hopes, INR appreciates

Keeping 4Q expectations in check amid limited signs of momentum pick-up

• ​The usual seasonality of the fourth quarter, compounded with (a) sporadic citation of concerns around budget and decision-making delays, and (b) problems in some key accounts, keeps us from building any recovery in growth momentum in 4Q or in the immediate future. Yet, there are a few potential positives to note:
  
• Overall positive messaging in terms of deal wins, BFSI environment and client conversations, especially by tier-I IT.
  
• Likely postponement of any developments around H-1B visas, with fresh applications being accepted for the next year, starting early April. That said, recent overrule of programming jobs' automatic qualification under "specialty occupation" may not have a substantive impact, but does call for more scrutiny going forward.
  
• Traction in change-the-business side of the business, which has been the key additive factor for revenue growth, though not enough on current base.
  
• These may aid gradual improvement in growth through the course of FY18 rather than a sudden pick-up in growth.