Infosys Q3 PAT seen down 10% at Rs 2135.6cr: Motilal Oswal
Motilal Oswal has come out with its earnings estimates on Infosys for December quarter FY13. According to the research firm, the company's Q3FY13 sales are likely to go up by 2% at Rs 10,054.8 crore, quarter-on-quarter (QoQ) basis.
January 09, 2013 / 11:59 IST
Motilal Oswal has come out with its earnings estimates on Infosys for December quarter FY13. According to the research firm, the company's Q3FY13 sales are likely to go up by 2% at Rs 10,054.8 crore, quarter-on-quarter (QoQ) basis.
The company's net profit is seen down 9.9% at Rs 2135.6 crore, QoQ.Motilal Oswal Q3FY13 earnings estimates report:We expect Infosys to grow revenues by 3.3% QoQ to USD1,857m. This builds organic revenue growth of 1.1% QoQ, lower than 3.6% implied in the company's full year organic revenue growth guidance of 5%. Our revenue growth expectation is broken into the following: [1] organic volume growth of 1% QoQ, [2] positive impact from cross currency movements of 0.4% QoQ, [3] USD40m incremental revenues from 2-month revenues following Lodestone's acquisition and [4] ~30bp negative impact from mix-based pricing. In Rupee terms, we expect revenue growth of 2% QoQ to INR100.5b assuming 1.3% QoQ appreciation in the Rupee. We expect EBIT margin to decline 130bp QoQ to 25% on account of: [1] wage hikes at offshore, implying negative impact of 120bp, [2] revenues from lower-margin Lodestone acquisition, [3] headwinds offset partly by higher utilization, as net employee additions are expected to remain flattish given deferment of ~5,000 joinees to FY14. We expect PAT to decline 10% QoQ to INR21.4b on account of lower margins and lower forex gains (we estimate INR 386 million forex gains v/s INR 1,570 million in 2QFY13). Our EPS estimate for the quarter stands at INR37.4, down 10% YoY, a first in 11 quarters. 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!
