The IT major is unlikely to change its revenue growth guidance of 13-15 per cent in constant currency terms and EBIT margin guidance of 21-23 per cent for FY23 when it announces its quarterly earnings on Sunday, said analysts.
Kotak Institutional Equities expects Infosys to report a 7.2 per cent YoY rise in net profit at Rs 5,568.10 crore from Rs 5,195 crore in the same quarter last year. Revenue for the quarter jumped 22.5 per cent YoY to Rs 34,164.20 crore from Rs 27,896 crore in the year-ago quarter. Ebit margin is seen falling to 20.8 per cent from 21.6 per cent in March and 23.7 per cent in the year-ago quarter.
“We forecast sequential strong CC revenue growth rate of 4.5 per cent QoQ, driven by continued strength in discretionary spending by clients. Pass through elements could stay elevated. We forecast 80 bps sequential and 290 bps YoY decline in EBIT margin,” it said.
Sharekhan expects profit for the IT major to come in at Rs 5,606 crore, up 7.9 per cent YoY. It sees revenue for the Bengaluru-based firm coming in at Rs 34,129 crore. Dollar revenue is seen rising 16.9 per cent YoY to $4,421 million from $3,782 million while Ebit margin is seen at 20.9 per cent.
“We expect growth guidance to stay front-ended i.e. expect strong growth commentary for September quarter. We believe high attrition is a worrying sign. The concern has shifted to onsite, where attrition among local headcount is higher than offshore attrition. Quantum of wage increase onsite will be an area of focus,” it said.
Emkay Global sees profit rising 7.3 per cent to Rs 5,576 crore and sales jumping 22.1 per cent to Rs 34,054.80 crore. Investors, it said, would be keenly following large deals intake; any delay of projects due to macro uncertainties, high inflation and supply chain disruptions and update on client conversations.
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