Infosys Q3 Earnings Expectations - 5 Things To Know
1) HDFC Securities expects Infosys to post revenues of Rs 17,790 crore in Q3, up 1.3 per cent on a quarter-on-quarter basis and 3 per cent year-on-year. In dollar terms, the brokerage expects Infosys to post revenue of $2,747 million in Q3 - up 0.7 per cent quarter-on-quarter and 7.7 per cent year-on-year.
2) The third quarter is seasonally weak for Indian outsourcers due to holidays in the United States and Europe, key markets where they fight for contracts with competitors. On the overall IT sector (coverage universe), HDFC Securities expects the sector to be impacted by "3Q seasonality and yet post mild revenue acceleration". In dollar terms, TCS on Thursday reported a Q3 revenue of $4,787 million, up 1 per cent quarter-on-quarter and 9 per cent year-on-year.
3) In terms of net profit, HDFC Securities expects Infosys to report an adjusted PAT or profit after tax of Rs 3,725 crore. Infosys had reported a net profit of Rs 3,726 crore for the quarter ended September 30, 2017. HDFC Securities expects Infosys to post a margin of 23.8 per cent, down from 24.2 per cent reported in the second quarter.
5) In terms of management commentary, analysts would be closely watching updates on growth strategy after the induction of new CEO and commentary on client budgets. The outlook on BFSI (banking, financial services and insurance) vertical would also be closely watched. Infosys is expected to maintain its FY18 revenue guidance at 5.5-6.5 per cent in constant currency.