Infosys Q1 PAT seen up 3.7% at Rs 2402cr: MOSt
Motilal Oswal has come out with its earnings estimates on Infosys for the quarter ended June 2012 (Q1FY13). According to the research firm, the company's Q1FY13 sales are likely to go up by 8% at Rs 9562.1 crore, Quarter-0n-Quarter (QoQ) basis.
July 10, 2012 / 15:56 IST
Motilal Oswal has come out with its earnings estimates on Infosys for the quarter ended June 2012 (Q1FY13). According to the research firm, the company's Q1FY13 sales are likely to go up by 8% at Rs 9562.1 crore, Quarter-0n-Quarter (QoQ) basis.
The company's net profit is seen up 3.7% at Rs 2402.5 crore, QoQ.Motilal Oswal report on Infosys:We expect Infosys to report flat revenue QoQ at USD 1,771m, at the bottom end of the company's guidance of USD1,771-1,789m. We estimate volume growth of 0.7% QoQ, offset by cross-currency headwinds. In Rupee terms, our revenue estimate is INR95.6b, up 8% QoQ, entirely from currency depreciation. Despite the favorable currency and no wage hikes, we expect EBITDA margin to decline 30bp QoQ to 32.3% on lower utilization (-100bp QoQ), visa costs and higher local additions onsite. We expect PAT growth of 3.7% QoQ to INR24b, and EPS of INR42, v/s the company's guidance of INR36.89, which was at assumed currency rate of INR50.88/USD. We expect Infosys to lower its USD revenue growth guidance to 6-8% from 8-10%. For 2Q, we expect Infosys to guide USD revenue growth of 3-4% QoQ. Assuming a closing currency rate of INR55.6/USD, even if Infosys announces wage hikes (effective from 2Q), the company should guide for an EPS of INR176-180.Key things to watch for: (1) 2Q and FY13 USD revenue guidance; (2) Revised gross hiring number after deferral in joining dates of some freshers. Stock trades at 14.8x FY13E and 14.2x FY14E EPS. Buy with a target price of INR2,813, based on 16x FY14E EPS. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
