Infosys Q1: Kotak expects net to fall 2.3% at Rs 2338.3 cr

Kotak Securities has come out with its first quarter (April-June) earnings estimates for technology sector. The brokerage house expects Infosys to report a 2.3 percent degrowth quarter-on-quarter (growth of 2.2 percent year-on-year) in net profit at Rs 2338.3 crore.

Revenues are expected to increase by 5.2 percent Q-o-Q (14.4 percent Y-o-Y) to Rs 11,001.7 crore, according to Kotak Securities.

Kotak Securities report on Infosys

As usual, markets will watch out for any change in the FY14 revenue guidance by Infosys. The return of Mr. Murthy to Infosys has raised hopes on the medium-to-long term prospects of the company. However, the near term scenario remains challenging. The company has guided for a 6 percent - 10percent growth in revenues in USD terms. On a CC basis, we do not expect any change in the guidance but expect revenues to gravitate towards the lower end of the range. Margins are expected to come under further pressure due to the recently announced salary increments.