Infosys, India's second-largest software services exporter by revenues, will declare its June quarter (Q1 FY2017) results on July 15.
The Bengaluru-based company had posted consolidated net profit of Rs. 3,030 crore on revenues of Rs. 14,354 crore for the quarter ended June 2015. In dollar terms, revenues stood at $2.26 billion and net profit was $476 million. In rupee terms, net profit rose 5 percent on a year-on-year basis (YoY) while revenues increased 12.4 percent.
Here is what two brokerages have estimated the company led by CEO Vishal Sikka to report in terms of revenues and net profit for the June 2016 quarter:
The brokerage estimates revenues to come at $2.52 billion, marking an increase of 11.6 percent on YoY basis and 2.9 percent on sequential basis. In constant currency terms, revenue growth is likely to be 2.4 percent on a sequential basis. Operating profit (EBIT) margin is likely to be around 24.2 percent.
"Wage hikes, visa costs to pressurise EBIT margin, EPS; key factors to watch – automation impact on replacing people, deal wins, retail vertical growth, margin band maintenance, Brexit commentary," the brokerage said in a note.
Motilal Oswal Securities Limited (MOSL)
MOSL says Infosys is likely to report $2.54 billion revenues for the June 2016 quarter, translating into a 4 percent growth on sequential basis ($2.45 billion in March 2016 quarter).
In domestic currency terms, MOSL has estimated the company's June 2016 revenues to come at Rs. 17,019 crore, an increase of 18.6 percent over Rs. 14,354 crore reported in June 2015 quarter. Net profit is expected to rise 18.7 percent to Rs. 3,595.50 crore.
The brokerage said key factors to look out for are total contract value (TCV) of deal wins during the quarter, commentary around contribution of newly launched services and macro, verticals, margins and pricing.
More than the results, investors and analysts will be keen to know the management's assessment of Brexit and its impact on the company's topline and bottomline in the remaining quarters, apart from a sectoral perspective.
"The audited consolidated financial results of the Company and its subsidiaries as per INDAS for the quarter ending June 30, 2016 (Q1). The audited consolidated condensed financial statements of the Company and its subsidiaries as per IFRS in INR for the quarter ending June 30, 2016," the Bengaluru-based company informed the Bombay Stock Exchange (BSE) on Tuesday evening.