ICICIdirect has come out with its third quarter (October-December) earnings estimates for the IT sector. The brokerage house expects Infosys to report a 4.4 percent growth quarter-on-quarter (growth of 12.4 percent year-on-year) in net profit at Rs 3232.8 crore.
Revenues are expected to increase by 3.2 percent Q-o-Q (up 5.7 percent Y-o-Y) to Rs 13769.5 crore, according to ICICIdirect.
Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 4.5 percent Q-o-Q (up 9 percent Y-o-Y) to Rs 3946.1 crore.
ICICIdirect on Infosys:
USD revenues could grow 1 percent Q-o-Q to USD 2,223 million as seasonal weakness in manufacturing, retail, BFSI verticals in the US and Europe weigh. Rupee revenues could grow 3.2 percent Q-o-Q to Rs 13,770 crore helped by 2 percent inter-quarter depreciation in the average rupee rate relative to the dollar.
EBIT margins may improve 41 bps Q-o-Q to 26.5 percent as operational efficiency and currency tailwinds may partially offset quarterly promotions and S&M investment headwinds. Investor interest: update to FY15E guidance, CY15E client budgeting trends, key verticals outlook and attrition.
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