IIFL analyst Sandeep Muthangi advises investors to add Infosys to their portfolios.
Dollar revenue may rise 3.6 percent quarter-on-quarter to USD 2,337 million and rupee revenue is seen rising 5.9 percent to Rs 15,210 crore in the quarter ended September 2015.
Infosys is confident of meeting its guidance of 10-12 percent growth for fiscal 2016. Basking in the aftermath of a fantastic quarterly performance, Infosys CEO Vishal Sikka and CFO Rajiv Bansal spoke to CNBC-TV18 to explain the success story.
Infosys' first quarter dollar revenues in constant currency terms surged 4.4 percent to USD 2.25 billion, ahead of both the previous quarter's number and analyst forecasts.
Sales are expected to increase by 4.8 percent Q-o-Q (up 10 percent Y-o-Y) to Rs 14051.6 crore, according to Motilal Oswal.
In an interview with CNBC-TV18, Vibhor Singhal, Analyst at PhillipCapital, outlined his expectations from Infosys earnings, which is slated to declare numbers tomorrow.
According to a CNBC-TV18 poll, profit after tax is expected to fall 2.5 percent sequentially to Rs 3,017 crore while revenue is seen rising 5 percent to Rs 14,097 crore in the quarter ended June.
Preferring Infosys over TCS in terms of valuations, Menon says a 3.2 percent dollar growth is expected of Infosys. He says its margins and growth are likely to converge with that of TSC's.
Negative sentiment may have been already priced in as two other mid-cap companies Persistent and KPIT Technologies have also issued earnings warnings. Persistent had alerted investors that certain client specific issues could result in dollar revenue decline sequentially.
Investors should focus on the positive guidance laid out by the company, which sounds â€œachievableâ€, according to Kawaljeet Saluja, executive director and head of research, Kotak Institutional Equities.
Analysts are mixed on the Vishal Sikka-led company with most brokerages still betting on it but slashed target price and earnings per share (EPS) estimates.
The country‘s second largest software services, Infosys, is looking to eschew its conservative image and plans to go out and buy a few companies, largely in the digital space, though it is also open to considering acquisitions in the traditional services.
IT major Infosys missed street expectations with the profit falling 4.7 percent sequentially to Rs 3,097 crore in the quarter ended March 2015.
Sikka is aiming to achieve industry leading profitable growth by FY17. He also wishes to achieve the lowest level of attrition in the industry and attract the best talent.
Revenues are expected to increase by 0.7 percent Q-o-Q (up 7.9 percent Y-o-Y) to Rs 13892.4 crore, according to Motilal Oswal.
Sales are expected to decrease by 0.1 percent Q-o-Q (up 7 percent Y-o-Y) to Rs 13781.5 crore, according to Prabhudas Lilladher.
Revenues are expected to increase by 0.8 percent Q-o-Q (up 8 percent Y-o-Y) to Rs 13901 crore, according to ICICIdirect.
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.
IT major TCS is likely to set the tone for earnings this quarter. Cross currency headwinds remain major concern as the company had earlier indicated a 40 basis point impact on margins due to forex moves. Kawaljeet Saluja, ED and head of research, Kotak Institutional Equities speak on what to expect from the TCS earnings this evening.
The company is expecting a healthy pipeline in financial services and insurance segments.
Vishal Sikka said leading US banks were cautious on their IT spending for 2015, and discussions with them for orders were getting delayed.
Nilesh Shah, MD & CEO of Envision Capital, said the numbers are bang in line with expectation, and thus are a sigh of relief for the markets
Infosys hosted a press conference to discuss its third quarter earnings.
Moshe Katri, MD, Cowen & Co expects Infosys' margins to be in mid-20s on an annual basis and is looking for guidance to be revised to 7 percent.
Sales are expected to increase by 4.9 percent (Y-o-Y) to Rs 13667.6 crore, according to Dolat Capital.