Infy Q3 nos tomorrow: What do experts forsee?

The country's second largest IT services exporter Infosys Technologies is set to announce its third quarter results for fiscal 2011 (Q3FY11) on Thursday. As per CNBC-TV18 estimates, its net profit is expected to go up by 4.47% at Rs 1,814.69 crore as against Rs 1,737 crore in previous quarter. But what are experts predicting?

Prashastha Seth, Senior VP, IIFL Private Wealth, expects a strong set of results from the IT major. "Infosys would probably show the best results among the top tier IT companies and we expect it to report both above estimates in terms of revenue as well as EBITDA. I think EBITDA of Infosys will probably be ahead of other players. We expect a strong set of results and hopefully the company will probably up its guidance for the year as well," said Seth.

Sandeep Muthangi, IIFL Institutional Equities, too feels Infosys will have the best results of the season in this quarter. "We believe if you discount the lesser working days, this quarter should be as strong or as good as the last quarter," Muthangi observed. He believes that the margins for the company should be fairly good. "Despite the appreciation on the rupee, the margins should improve marginally for Infosys."

But, Bhavin Shah, CEO of Equirus Securities expects a margin erosion of half a percent for Infosys. However, he added, "The demand for technology is strengthening among US corporate. This would be one of the strongest years for investments. These investments would be in new technology, instead of the discretionary spending, after several years of questionable data out of the tech spending," he said adding, "The commentary would be on their perceiving the environment and the momentum in transformation of projects driven through discretionary spending."