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Infosys Q1 results: Here’s what to expect

64879641 64834891 Infosys, India’s second-largest IT firm, is all poised to announce its financial results for the quarter to June on Friday. Brokerage firm Phillip Capital expects the software major to maintain revenue growth guidance for FY19 at 6-8 per cent constant currency growth, with a brighter outlook for deal flow. It also sees a contraction of 100 basis points QoQ in EBIT margin due to wage hike and visa cost. Phillip Capital has also projected 1.8 per cent QoQ and 7.7 per cent YoY growth in revenue in dollar terms while net profit may grow 1 per cent sequentially and 7 per cent yearly.Kotak Institutional Equities estimated 6.4 per cent annual growth in profit after tax and a marginal jump of 0.50 per cent in sequential terms. It expects that the company may maintain status quo in its revenue guidance. The brokerage house has estimated 12.20 per cent YoY and 5.90 per cent QoQ rise in net sales for April-June 2018.Market participants are focusing on growth from financial services vertical, total contract value (TCV) of deal wins, leadership attrition that seems to have reached worrying levels, account mining metrics, pricing outlook and progress on automation.Kotak pegged constant currency revenue growth of 2.7 per cent and cross currency headwind of 100 bps. The first quarter is a seasonally strong quarter due to higher billing days and allocation of budgets to various programmes. “Expect EBIT margin decline of 100 bps due to wage revision and higher visa costs. This will be offset to some extent by rupee depreciation,” it said in a report.

Source: ET

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