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Infosys results 2015 are set to be announced today around 9 a.m. in the presence of CEO Vishal Sikka and other luminaries of the iconic information technology (IT) company. Last time round, Infosys results had been surprisingly strong in the first quarter (Q1) after months of some ordinary scores and now analysts expect the second quarter (Q2) too to be a robust one for the IT major. For the first quarter ended June 2015, Infosys posted a consolidated net profit of Rs 3,030 crore, down 2.19 per cent, against Rs 3,098 crore in the sequential quarter ended March 2015. Net sales of the company jumped 7.03 per cent quarter-on-quarter (QoQ) to Rs 14,354 crore. The brokerage houses are predicting a 4% plus sequential revenue growth and a marginal rise in operating profit margins. The upbeat projection on Infosys is based on the fact that the IT major has witnessed a steady inflow of deals while also being aggressive on its pricing strategy. On the earnings before interest and tax (EBIT) margin front, Infosys is expected to perform marginally better given the depreciation of the rupee against the US dollar and lower visa costs. Added to this, there is no pressure of employees wage hike. Here are top 5 things to note about Infosys results 2015: (Express Photo)
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1. Infosys results 2015: Infosys reported a 4.5% sequential rise in revenue growth in the first quarter of this fiscal which was its highest in the last 15 quarters and also a volume growth of 5.4% again its highest in past 19 quarters. If Infosys can maintain that momentum in the second quarter, then it could be said a turnaround is in the offing. Infosys reported an EBIT margin of 24% for the first quarter of FY16 and expects this to be in the range of 24-26% during the fiscal. (Express Photo)
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2. Infosys results 2015: Credit Suisse in its quarter preview note on Infosys said, “The company had a great start to FY16 with 4.4% constant currency growth and looks well set to come at the upper end of its FY16 guidance of 10-12% constant revenue growth.” Credit Suisse has projected an 80 basis points expansion in EBIT margins. (Express Photo)
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3. Infosys results 2015: Kotak Institutional Equities in its report said that Infosys would be the company among the top tier players with the highest growth on a constant currency basis of 4.6%. “We recognise that the recent spurt of growth at Infosys is partly from capturing low-hanging fruits of greater focus on top-15 accounts and pricing aggression-led build-up of order book,” it said, adding, “however, we also find several steps of effectiveness of sales and delivery creditable, which will boost medium-term growth.” According to Kotak Institutional Equities, the 2.5% rupee depreciation, lower visa costs and absorption of wage increase are tailwinds for margins that would be offset by higher provisioning for variable payouts and sharp decline in pricing. It has forecast 40 basis points sequential increase in EBIT margin. (Express Photo)
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4. Infosys results 2015: BofA Merrill Lynch in its note on Infosys said, “EBIT margin is likely to expand 110 basis points quarter on quarter to 25.1% helped by absence of visa costs, favorable forex and operating leverage.” (Express Photo)
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5. Infosys results 2015: As far as stock market outlook is concerned, experts are saying that second-quarter earnings from blue-chips such as Infosys, TCS and Reliance Industries and key macroeconomic data – IIP and inflation – will dictate the trend this week. "The near-term major trigger for the market will be September 2015 earnings. Focus will also be on management guidance and outlook from corporates for the remaining part of the year. Apart from earnings, macroeconomic data, trend in global markets, movement of the rupee against the dollar and crude oil price will decide the trend on the bourses this week," said Vijay Singhania, Founder Director, Trade Smart Online. (Express Photo)
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