Infosys Ltd shares inched up higher ahead of the announcement of its quarterly results on Friday, i.e. 12 July. The company said it will release the earnings statement for the first quarter (Q1) at around 3:45pm. At 9:48 am, Infosys was trading flat at Rs 720.90, down 0.08 percent.
A CNBC-TV18 poll expects Infosys to post a 2.8 percent growth in constant-currency terms boosted by a one-month contribution from the Stater NV, which Infosys had acquired in May from ABM Amro Bank.
Infosys’s revenue growth in dollar terms is seen slightly lower at 2.4 percent due to a 2 percent appreciation in dollar on an average compared with the euro, pound and the Australian dollar.
Net profit is likely to fall 9.1 percent to Rs 3,702 crore hit by lower margins. A CNBC-TV18 poll expects Infosys to witness a decline of 130 basis points in operating margins to 20.2 percent compared with the previous quarter.
This is below the IT company’s guided band of 21-23 percent for FY20. Margins were expected to be under pressure on account of wage hikes for 85 percent of employees, increase in H1-B visa application costs and the rupee appreciation during the June quarter.
Infosys is likely to maintain its FY20 revenue growth guidance of 7.5–9.5 percent in constant currency terms and may also hold on to its margin guidance of 21-23 percent, says CNBC-TV18.
Notably, Infosys rival Tata Consultancy Services Ltd (TCS) posted its June quarter earnings earlier this week that took the markets by surprise. TCS reported profit of Rs 8,131 crore for the quarter ended June, flat sequentially when compared with the March quarter’s profit of Rs 8,126 crore. The rupee revenue grew 0.4 percent sequentially to Rs 38,172 crore for the June quarter.
Constant currency revenue growth for the June quarter stood at 10.6 percent year-on-year.
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