KRChoksey sees 15% jump in Infosys' Q1 revenues
KRChoksey expects revenues in Infosys to increase by 6 percent Q-o-Q (15 percent Y-o-Y) to Rs 11,065 crore.
July 11, 2013 / 18:37 IST
KRChoksey has come out with its first quarter (April-June) earnings estimates for technology sector. The brokerage house expects Infosys to report a 1 percent degrowth quarter-on-quarter (growth of 3 percent year-on-year) in net profit at Rs 2,367 crore.
Revenues are expected to increase by 6 percent Q-o-Q (15 percent Y-o-Y) to Rs 11,065 crore, according to KRChoksey.Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 7 percent Q-o-Q (up 1 percent Y-o-Y) to Rs 2973 crore.KRChoksey report on InfosysWe are assuming revenue growth to be 2.3 percent Q-o-Q in constant currency terms supported by one time deferral of Lodestone revenue to the extent of USD 14 million in Q4FY13. Whereas adverse cross currency movements will adversely impact revenue growth in USD terms by 35 bps Q-o-Q.Marginal impact of visa cost and wage hike for sales staff and onsite employees will be mitigate by INR depreciation against major global currencies.Expect forex gain in Q1FY14E to be Rs 36 crore against gain of Rs 123 crore in Q4FY13. We expect, the company to maintain its revenue guidance of 6 percent to 10 percent Y-o-Y growth (in USD terms) in FY14E. The key factor to look out for in the call is change in strategy after return of Mr. Murthy and steps taken to mitigate impact of restriction on visas in US, Australia and Canada. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
