KR Choksey and Securities has come out with its third quarter (October-December) earnings estimates for the IT sector. The brokerage house expects Infosys to report a 2 percent growth quarter-on-quarter (growth of 10 percent year-on-year) in net profit at Rs 3155 crore.
Sales are expected to increase by 3 percent Q-o-Q (up 5 percent Y-o-Y) to Rs 13691 crore, according to KR Choksey and Securities.
Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 5 percent Q-o-Q (up 10 percent Y-o-Y) to Rs 3964 crore.
KR Choksey and Securities on Infosys:
Seasonally weak quarter. Revenue growth in USD terms to remain muted at 2 percent. We don't expect significant changes in FY15 USD-term guidance. Q-o-Q Rupee depreciation to support the rupee term revenue growth. Post wage hikes in earlier quarters, we expect the OPMs to expand in this quarter further aided by rupee depreciation.
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