Infosys Marginally Up ahead of Q1 Numbers : 12.July.2019
TRADE NIVESH: Shares of IT major Infosys traded with nominal gains after inching up about 1 per cent in morning trade on Friday, ahead of the company's June quarter results scheduled later today.
The scrip traded 0.37 per cent up at Rs 723.50 on BSE around 10:05 am.
The company is expected to report 2-3 per cent sequential rise in revenue growth in constant currency (CC) terms on Friday and retain its growth guidance of 7.5-9.5 per cent for the full year.
Ebit margins are expected to contract by over 100 basis points, even though analysts do not see any change in FY20 EBIT growth guidance of 21-23 per cent. Profit is likely to fall in double digits sequentially. Pressure on margin is likely to continue.
SBICap Securities said the IT major has shown steady progress in returning to top-quartile growth trajectory, but it is yet to address concerns over margins and attrition.
“Infosys’ Q1 revenue is estimated at $3,147 million, up 2.9 per cent QoQ (11.2 per cent YoY). We have factored in a CC growth of 3.1 per cent (including Stater acquisition) and a cross-currency impact of – 25 bps,” said HDFC Securities.
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