Infosys guiding below 11.5% will be negative: IDFC Sec

India’s second largest IT services company Infosys is expected to report 14.33 percent growth in profit after tax (PAT) at Rs 2,752 crore compared to previous quarter. A CNBC-TV18 poll of analysts sees Infosys’s earnings before interest and tax (EBIT) jump over 11 percent sequentially to Rs 3,154 crore and EBIT margin is seen rising 243 basis points Q-o-Q to 24.15 percent.

Analysts will keenly eye the full year dollar revenue guidance (FY14), which if disappoints, could result in a knee-jerk reaction for the stock. According to Hitesh Shah, IT analyst of IDFC Securities, the street expects 11.5-12 percent revenue growth guidance for the full year.

He says 11.5 percent will result in no reaction in terms of stock action, while 12 percent guidance would lead to a positive move. “If they do not raise the guidance to anywhere close to that, then it could come as a negative surprise,” he told CNBC-TV18.

Commenting on the recent spate of management level exits, Shah says he does not expect Infosys top brass to make any explicit comment on any particular exit. But that will remain a key monitorable for the stock.