Infosys expected to report 5.6% QoQ growth

MUMBAI: Infosys is expected to report 5.6% sequential growth in the rupee denominated revenue for the June 2013 quarter, much better than the 0.3% increase in the previous quarter, according to the average estimates of six brokerages and ETIG forecast. Net profit, however, is expected to drop by 1.9%.

The second biggest IT firm among those listed in India will declare financial results for the first quarter of FY14 on July 12, 2013. It is likely to report Rs 11,042.9 crore in revenue for the June 2013 quarter helped by a strong depreciation in the rupee against major currencies.

Based on the quarterly average rate, the rupee depreciated by 3.2% from the previous quarter against the dollar and by over 1.7% against each of the euro and the British pound.

Profit before interest, tax, depreciation and amortization ( PBITDA) is likely to increase by 5.5% sequentially to Rs 2,852.6 crore. The company is however likely to show a negative impact of foreign exchange hedging on net profit, which is likely to decrease to Rs 2,348.6 crore from Rs 2,394 crore.

The commentary of the management about the project ramp-ups and the pace of decision making by clients will be crucial to understand the demand scenario. The presence of NR Narayana Murthy at the helm of affairs has spiked expectations of investors. His views about the future outlook would be critical.

There could also be a possibility of an issue of bonus shares to existing shareholders, which may help in supporting the stock price in the near term. It had declared one bonus share for every one share held in July 2006.

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Infosys expected to report 5.6% QoQ growth

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