Infosys, the country's second largest software exporter, is likely to post single-digit profit and revenue growth for the second quarter ended September 30, 2020, led by broad-based performance across all business segments including BFSI, retail and communications. The Bengaluru-based IT major is also expected to raise revenue guidance for the current fiscal on the back of strong deal wins and improved business environment. The company will release its results today.
Management commentary on performance appraisal, revenue guidance, update on deal wins and projects under pipeline, M&A strategy, recovery trends across verticals will also be closely monitored.
Analysts at Sharekhan expect Infosys to report revenue growth of 2.7 per cent on quarter-on-quarter basis, while in dollar terms it is likely to grow by 4.1 per cent QoQ.
Centrum Broking expects Infosys to post 2.4 per cent QoQ revenue growth in constant currency terms. The US dollar revenue is seen growing by 3.7 per cent QoQ to $3,236 million. In rupee terms, revenue is seen up 1.5 per cent at Rs 24,014.7 crore QoQ and 6.1 per cent YoY. Profit is expected to rise 5.2 per cent QoQ to Rs 4,434.2 crore and 10.3 per cent YoY.
Rivals Tata Consultancy Services (TCS) Ltd and Wipro have already reported their second quarter earnings reports and have preformed reasonably well as compared to previous two quarters due to coronavirus impact.
For the first quarter ended June 30, 2020, Infosys reported 11.5 per cent growth in consolidated net profit (after minority interest) at Rs 4,233 crore for the first quarter ended June 30, 2020, as against Rs 3,798 crore in the same period last year. On the quarter-on-quarter basis, the profit fell 2 per cent from Rs 4,321 crore in March quarter of FY20. It posted consolidated revenue of Rs 23,665 crore in June quarter of 2020 versus Rs 21,803 crore in the year ago period, registering a growth of 8.5 per cent. On a sequential basis, revenue rose 1.7 per cent from Rs 23,267 crore in the previous quarter.
In dollar terms, net profit rose 2.3 per cent YoY to $558 million, while revenue fell 0.3 per cent YoY to $3,121 million.
Ahead of Q2 earnings, Infosys shares remained under stress, falling nearly 2 per cent in the morning trade. The stock was trading 1.55 per cent lower at Rs 1,140 apiece.
By Chitranjan Kumar