Nirmal Bang Securities has factored in 3.9 per cent QoQ CC growth and nearly 55 basis points (bps) cross-currency headwind, resulting in revenue growth of 3.3 per cent in US dollar terms. In rupee terms, the Bengaluru-headquartered IT services company is expected to report net sales of Rs 22,726.3 crore, up 10.3 per cent YoY and 4.2 per cent QoQ.
EBIT, according to Nirmal Bang, should come in at Rs 4,824 crore, up 7.9 per cent QoQ and down 1.4 per cent YoY. Earnings before interest and taxes (EBIT) margin is expected to fall to 21.2 per cent against 23.7 per cent in the year-ago period. Reported PAT is seen at Rs 3,961.2 crore, up 3.2 per cent YoY and 4.3 per cent QoQ.
During the three-month period (July-September), Infosys
has outperformed the market by surging 10 per cent as compared to 2.67 per cent decline in the Nifty50 index. The Nifty IT index, too, has declined 2.49 per cent during the period, ACE Equity data show.
"We expect 3.6 per cent QoQ revenue growth on CC basis and cross-currency tailwind of 60 basis points (bps) on dollar revenue growth. Growth is expected to be driven by ramp-up of large deals, broad-based growth across verticals, and full-quarter revenue contribution from Stater’s acquisition (nearly 70 bps)," said analysts at Sharekhan.
The brokerage firm expects Ebidta margin to improve by 60 bps QoQ, led by lower investments on sales and marketing, absence of visa expenses and rupee tailwind. The benefit will be partially offset by wage revision of middle-management and higher subcontracting expenses, it added.
Commentary on large deal wins and TCVs (total contract values), contribution of digital business, demand environment outlook across verticals and geographies, benefit from reduction in corporate tax rate, and progress on arresting the attrition rate are some of the key things to watch out for.