IT bellwether Infosys Technology is expected to beat the uncertain macroeconomic turbulence in Europe and cross-currency headwinds to post 5-5.4% sequential dollar revenue growth in the June quarter. Some analysts believe that this rate of growth would be the best among the major IT firms, notably TCS and Wipro. Infosys will declare its first quarter results on Tuesday.

June quarter was possibly Indian IT industry’s best since the recession set in. An uptake in banking financial services and insurance (BFSI) as well as the slow to recover manufacturing sector has led analysts to believe that Infosys might raise the full-year guidance from the stated dollar growth of 16-18%.

The full year revenue upgrade, however, may not be significant considering that uncertainties in Europe continue due to the sovereign debt crisis. Analysts, in any case, perceive Infosys as a conservative company. Analysts expect the full year dollar topline guidance to be upgraded in the range of 18-20% and the rupee earnings per share (EPS) growth guidance to increase to Rs 114-117 compared to Rs 111 as stated earlier.

Sharekhan expects Infosys to raise its FY11 dollar-term revenue growth guidance and the rupee EPS guidance as visibility on volume growth improves. ?The earnings guidance of Rs 106.8-111.3 per share for FY11 seems quite conservative and way below the consensus estimate. Our positive stance on strong demand stems from the strong hiring plan — a gross addition of 30,000 employees. Historically, Infosys has increased its hiring guidance,? a research note from the firm said. Brokerage firm Motilal Oswal expects Infosys to outperform on revenue growth for the third consecutive quarter. ?We expect Infosys to post the best first quarter FY11 results among the top tier universe with US dollar revenue growth of 5.3% quarter-on-quarter (Q-o-Q), ahead of its guided range of 2.6-3.4%. TCS and Wipro are expected to follow with growth of 4.7% Q-o-Q and 3.7% Q-o-Q respectively,? it said.

Prabhudas Lilladher said its channel checks and interactions with managements hint strong deal pipeline and improving demand environment. ?We expect the tone of management commentary to be cautious due to uncertain macros in Europe and the US. The sales cycle continue to see improvement on Q-o-Q basis,? the brokerage firm said in a report.

The brokerage firm expects Infosys to revise their guidance upwards to 18-20% year-on-year (Y-o-Y), and says that a guidance above 20% would be taken positively by investors. While Infosys had hinted to a margin contraction of 250 basis points in the June quarter because of wage inflation, analysts expect Ebitda margins to decline much less ? between 90 and 160 basis points because of better rupee realisations, higher than guided growth, as well as improved utilisation.