The fourth quarter earnings season will kick off with IT bellwether Infosys Technologies declaring its results on April 15. Brokerages are expecting better results from technology companies in general for the quarter due to improved sentiment in the US market.
As per the guidance set by the company in previous quarter, Infosys is expecting revenues of USD 1.60-1.61 billion and earning per share of Rs 31.06-31.28 in the fourth quarter (January-March) of FY11. For the financial year 2010-11, company sees revenue at USD 6.04-6.06 billion and EPS at Rs 118.68-118.90.
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It expects FY11 dollar revenue growth at 25.8-26.22% and rupee revenue growth at 20.5-20.84%.
For the nine month ended December 2010, Infosys had reported a net profit of Rs 4,713 crore on total income of Rs 19,477 crore, growth of 7.7% and 19% compared to same period in previous year, respectively.
The stock has rallied more than 10% in last couple of weeks. At 13 hours IST, a share was trading at Rs 3236, down 1.5%.
KR Choksey Securities believes pick up in discretionary spend will enable the company to register revenue growth of 4.2% (in USD terms) in fourth quarter.
"Higher revenue growth than the management guidance and improvement in EBITDA margin will enable the company to outperform its guidance."
KR Choksey expects EBITDA margin of Infosys to improve primarily led by utilization rate and operating leverage and net profit margin to improve marginally led by increase in EBITDA margin and lower tax rate of 26% in Q4FY11.
DEEPAK KUMAR
PGDM
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