INSUBCONTINENT EXCLUSIVE:
Infosys is expected to report tepid numbers for March quarter, with revenue and profit projected to grow in small percentages.
Analysts said
dislocation.
Leading brokerages estimate revenue growth in the 6-10 per cent range and profit expansion at 3-18 per cent
the focus has shifted to FY21 guidance
rupee depreciation (offset by cross currency impact) and lower SG-A (selling, general - administrative) costs.
Commentary on demand outlook
and impact of Covid-19 on IT projects, details of region-wise changes in business execution or challenges, commentaries on continuity in
planning, cost-cutting measures and customer feedback will be among the key monitorables.
Amid lockdown in major markets such as India and
the US, the companies are facing a cash crunch
They may look to restructure their tech spend to cut cost
Jefferies projects revenues at Rs 23,544, up 9 per cent YoY, and profit at Rs 4,2108, up 3 per cent YoY
The brokerage does not expect Infosys to suspend its revenue growth guidance altogether, like Wipro did, but the range is likely to be wider
cent QoQ in dollar terms) and EBIT margin to be largely stable
Australian brokerage said in a note.
In the view of expected hit on revenues going ahead, the stock has already fallen 14 per cent year to
However, it has outperformed 30-share benchmark Sensex, which has tumbled 23 per cent.
JP Morgan expects Infosys to guide for 2-6 per cent
constant currency growth in FY21 with margins in the 20-22 per cent band
It pencilled in March quarter revenues at Rs 23,605 crore and profit at Rs 4,286 crore.