Infosys Q1 Profit Seen At Rs 3,435 Crore, Dollar Revenue May Rise 4.1%

Infosys, India's second largest outsourcer, is expected to report a net profit of Rs 3,435 crore on sales of Rs 17,028 crore in the June quarter, according to analysts polled by NDTV Profit. Infosys numbers come a day after TCS, India's biggest outsourcer, reported better-than-expected profit in Q1.

Infosys profit in Q1 is likely to dip against Q4 because of salary hikes, analysts said. Infosys had reported a net of Rs 3,597 crore on sales of Rs 16,550 crore in Q4.

Infosys EBIT margins are seen at 25.9 per cent in the June quarter, which is in the 24-26 per cent band, guided by the management.

Infosys revenue, in dollars, is expected to rise 4.1 per cent sequentially to $2,546 million, analysts said.

What to watch out for:

1) Commentary on Brexit, which will impact domestic outsourcers, will be keenly watched. According to Religare Securities, Infosys gets 23 per cent of revenue from Europe.

2) Guidance: Infosys had forecast industry-leading growth rate for the current FY17 fiscal year. It expects constant currency revenue growth of 11.5-13.5 per cent in FY17, ahead of IT industry's growth estimate of 10-12 per cent. However, last month the company had warned about potential volatility in revenue growth in the coming quarters. Infosys had also indicated that its June quarter margins may fall by 200 basis points on account of salary hikes and visa costs.

Infosys shares had closed 1.5 per cent lower at Rs 1,176.25 on Thursday, underperforming the broader Nifty that ended 0.5 per cent higher.