Infosys Q1: Emkay expects net to fall 5% at Rs 2312 cr
Emkay Global Financial Services expects revenues in Infosys to increase by 5.3 percent Q-o-Q (14.5 percent Y-o-Y) to Rs 11,010.1 crore.
July 11, 2013 / 18:32 IST
Emkay Global Financial Services has come out with its first quarter (April-June) earnings estimates for technology sector. The brokerage house expects Infosys to report a 3.4 percent degrowth quarter-on-quarter (growth of 1.1 percent year-on-year) in net profit at Rs 2311.8 crore.
Revenues are expected to increase by 5.3 percent Q-o-Q (14.5 percent Y-o-Y) to Rs 11,010.1 crore, according to Emkay.Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 3.4 percent Q-o-Q (down 2.5 percent Y-o-Y) to Rs 2,865.4 crore.Emkay report on InfosysWe are building in a 0.7 percent Q-o-Q USD revenue growth with around 60 bps cross currency headwind. EBITDA margins are expected to decline by around 50 bps Q-o-Q to 26 percent on account of full quarter impact of onsite wage increments and continuous investments to boost volume growth. Profits are expected to decline by 3.4 percent Q-o-Q on account of higher taxes. Key things to watch out for (1) annual revenue guidance (we expect Infosys to retain its FY14 revenue growth outlook of 6-10 percent), (2) margin performance in the current quarter and likely trajectory ahead. 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!
