Infosys Q4 PAT seen down 3.6% at Rs 2283cr: Angel

Angel Broking has come out with its earnings estimates on Infosys for the March quarter FY13. According to the research firm, the company's Q4FY13 sales are likely to go up by 3.5% at Rs 10,788 crore, quarter-on-quarter (QoQ) basis.

The company's net profit is seen down 3.6% at Rs 2283 crore, QoQ.

Angel Broking report on IT sector Q4 earnings:

Information Technology expected to decline by 3.6% due to increase in operating costs on account of wage hikes given by the company. Amongst mid-tier IT companies, Tech Mahindra and Mahindra Satyam are expected to post 35.0% and 290% qoq growth respectively in reported profits because of lower base effect. During 3QFY2013, Mahindra Satyam posted an exceptional loss of `294cr, which hampered the profits of Tech Mahindra and its associate company - Mahindra Satyam. On an adjusted basis, profit of Mahindra Satyam is expected to decline by 16.7% qoq. Hexaware is expected to report an 11.4% qoq growth in profits with company recouping back some of its operational losses of last quarter, which were incurred due to a large project closure.

We believe FY2013 might be different in terms of growth rates  of tier-I IT companies, as companies will have divergent growth  rates with TCS and HCL Tech growing higher than the industry's  average (in mid teens) and Infosys growing in mid single digits.  We expect Infosys and Wipro to be back on track during FY2014  with TCS, HCL Tech and Cognizant growing higher than industry  average during the year. India's mid-sized IT companies might  have a tougher and slower year ahead as factors such as    demand pressure, limited pricing power, high client  concentration and limited bench sizes could restrict their profits  in the coming quarters.