Infosys's fourth quarter profit may fall 2.7 percent sequentially to Rs 3,161 crore on weak operational performance and slow growth in revenues, according to a CNBC-TV18 poll.
Analysts expect rupee revenue at Rs 13,818 crore during January-March quarter, up 0.15 percent over Rs 13,796 crore in December quarter and dollar revenues growth at USD 2,224 million, up 0.3 percent on sequential basis while constant currency growth is seen at around 2-2.5 percent (against its peers TCS (1.6 percent), HCL Tech (2.7 percent) and Wipro (1.2 percent)).
Infosys has the lowest exposure to currencies other than USD and generates more than two-third of its revenues in US dollar against 50-55 percent for peers.
Earnings before interest and tax (EBIT) may drop 2.8 percent quarter-on-quarter to Rs 3,586 crore and margin may decline 79 basis points to 25.95 percent in the quarter gone by. Investments and cross currency headwinds may have an impact on margin.
Analysts expect cross currency to also impact FY16 revenue and margins.
They expect the company to estimate its FY16 revenue growth of 9-11 percent in constant currency (against NASSCOM at 12-14 percent). Assuming a 300 basis points currency impact, the dollar revenue growth may be 6-8 percent in FY16, feel analysts.
The country's second largest IT services exporter maintained its FY15 guidance of 7-9 percent.
Key factors to watch out for are capital allocation policy and commentary on margins considering currency & required investments for growth. Commentary on what clients’ IT budgets and investment priorities/plans look like for the year (CY15) will also be watched.
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