Infosys is expected to take a marginal hit in Q4FY20 earnings due to the ongoing coronavirus crisis, brokerages said. The revenue growth is likely to be over 9 per cent in Q4FY20. In addition, the investors are expected to closely watch the IT company's guidance for the coming quarters.
Infosys may post an on-year revenue growth of just over 9 per cent in rupee terms at Rs 23,542.9 crore in the quarter ended March 2020, Edelweiss Securities said. A constant currency fall of 0.5 per cent QoQ.is expected to be reported by the IT company in the given period, it added.
"We expect revenues to grow 0.2 per cent quarter-on-quarter (QoQ) in constant currency terms (presuming 1 per cent hit due to Covid-19). With cross-currency acting as a headwind of 30 basis points (bps), US $ revenue may witness a marginal dip of 0.1 per cent QoQ to $3,240 million," ICICI Securities said in a note. Shares of Infosys were trading at Rs 656.75, up 28 points, or 4.45 per cent on NSE at the time of reporting.
"We expect Infosys' revenue to grow at 0.5 per cent QoQ in constant currency terms (0 per cent QoQ in dollar terms) and EBIT margin to be largely stable. We expect margin guidance to be cut by 100 bps to 20-22 per cent given weaker revenue growth and more conservative assumptions," the global brokerage Jefferies said.
Meanwhile, India's biggest IT company Tata Consultancy Services (TCS) reported a net profit of Rs 8,093 crore in the fourth quarter ending March down from 0.8 per cent sequentially from Rs 8,118 crore in Q3. IT giant Wipro, on a quarterly basis, has reported a 5.3 per cent fall in consolidated profit at Rs 2,326 crore.