KR Choksey and Securities has come out with its July-September earnings estimates for the information and technology sector. The brokerage house expects Infosys to report a 3 percent growth quarter-on-quarter (growth of 13 percent year-on-year) in net profit at Rs 2968 crore.
Revenues are expected to increase by 4 percent Q-o-Q (up 3 percent Y-o-Y) to Rs 13327 crore, according to KR Choksey and Securities.
Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 6 percent Q-o-Q (up 8 percent Y-o-Y) to Rs 3651 crore.
KR Choksey and Securities on Infosys:
Revenue growth momentum is expected to be improve sequentially supported by ramp up of recently signed large deals.
INR depreciation and one-time visa cost in Q1 FY15 will support margin improvement sequentially.
Expect forex gain of Rs 8 crore in Q2 FY15E against gain of Rs 129 crore in Q1 FY15.
We expect, the company to maintain its revenue growth guidance of 7 percent to 9 percent Y-o-Y (in USD terms) in FY15E. Key factor to watch out for in the result is viewpoint of new CEO about likely opportunities for the company and any change in the company's strategy to tap market, going forward.
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