Sales of Infosys are expected to increase by 4.2 percent Q-o-Q (up 23.6 percent Y-o-Y) to Rs 16,575 crore, according to Motilal Oswal.
Motilal Oswal has come out with its fourth quarter (Januray-March) earnings estimates for the technology sector. The brokerage house expects Infosys to report a 0.6 percent growth quarter-on-quarter (growth of 12.5 percent year-on-year) in net profit at Rs 3484.4 crore.
Sales are expected to increase by 4.2 percent Q-o-Q (up 23.6 percent Y-o-Y) to Rs 16,575 crore, according to Motilal Oswal.
Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 5.1 percent Q-o-Q (up 21.9 percent Y-o-Y) to Rs 4,549.2 crore.
Motilal Oswal's Report on Infosys:
Infosys raised its FY16 guidance in the previous quarter to 12.8-13.2 percent Y-o-Y CC, from 10-12 percent earlier. This implies 4Q guidance of 1-2.4 percent Q-o-Q CC. We expect revenue to grow 2.1 percent Q-o-Q CC, which would represent the strongest 4Q for INFO in the last six years.
In INR terms, revenue growth estimate is 4.2 percent Q-o-Q on the back of 2.3 percent sequential depreciation in INR v/s USD.
We also expect deals wins to improve compared to 3Q, given delays in signing of some deals in the previous quarter.
We expect EBITDA margin to expand 20bp Q-o-Q to 27.4 percent. The factors that we expect to play on margins are INR depreciation, improved utilisation, and pricing pressure.
Our PAT estimate is INR34.8b, up 0.6 percent Q-o-Q due to the impact of forex losses on other income.
The stock trades at 17.7x FY17E and 15.8x FY18E earnings.
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First Published on Apr 15, 2016 08:45 am