ICICIdirect has come out with its third quarter (October-December) earnings estimates for the technology sector. The brokerage house expects Infosys to report a 2.8 percent degrowth quarter-on-quarter (growth of 1.6 percent year-on-year) in net profit at Rs 3,303 crore.
Revenues are expected to increase by 0.3 percent Q-o-Q (up 13.6 percent Y-o-Y) to Rs 15,677 crore, according to ICICIdirect.
Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to fall by 1.8 percent Q-o-Q (up 8 percent Y-o-Y) to Rs 4,272 crore.
ICICIdirect's Report on Infosys:
USD revenues could decline 0.5 percent Q-o-Q to USD 2,380 million led by non-recurrence of one-off project termination revenue of USD 23 million that helped Q2 revenues, and impact of Chennai floods. Constant currency revenues could be flat Q-o-Q while those in rupees may grow 0.3 percent Q-o-Q to Rs 15,677 crore helped by 1.4 percent inter-quarter depreciation in the average rupee rate relative to the dollar. EBIT margins may decline 60 bps Q-o-Q to 24.9 percent led by lower utilisation (Chennai floods) and SG&A investments. Investor interest: CY16E IT budget trends, FY16E guidance revision, if any, large deal TCV signings, outlook across verticals and geographies, acquisitions pipeline and attrition.
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