ICICI Direct expects the company’s earnings to grow at 4.5 per cent on a quarter-on-quarter basis in the fourth quarter.
India’s second largest IT company Infosys14 is scheduled to present its quarterly results for the quarter ended March 2021. Along with these results, the marketer’s guidance for the new year will also be watched.
Infosys shares with a market cap of Rs 6 lakh crore have shown a growth of 114 per cent in FY 2021. At the same time, this stock has seen an increase of 8.9 percent in the quarter ended in March 2021.
ICICI Direct states that in the results to come on April 14, 2021, the market’s view will be on the company’s guide lines on revenue and margins for FY 2022. Apart from this, everyone will also be keeping an eye on the client budget, second wage hike (second pay hike), Daimler deal, status of digit technology, and commentary on different verticals of the company.
ICICI Direct estimates that the quarterly quarterly growth in Infosys’ revenue on the basis of constant currency is expected to be 4.5 per cent in the fourth quarter. Cloud migration, a number of major deals and Vanguard deals received this quarter will contribute to this.
ICICI Direct further said that the company has also got very good and big deals and that its deal pipeline is very strong, given that it is estimated that in the fourth quarter, Infosys’ dollar earnings could grow 5.3 per cent on a quarterly basis.
ICICI Direct estimates that the company may see a decline of 132 basis points in the fourth quarter on a quarterly basis. This will be due to the increase in salary and increase in travel and facility costs.
The brokerage house also said that the company’s profit is expected to grow 22 per cent on a quarterly basis in the fourth quarter due to lower base and other cost reductions.
