Infosys Q2 Profit To Increase By 3.4%

Information Technology giant Infosys will begin second quarter (July-September) earnings season tomorrow. Apart from the figures, CEO Vishal Sikka’s strategy would also be keenly watched.

If Sikka fails to come up with a clear strategy, it would trigger a sell-off said analysts, who are also concerned about Infosys’ abysmal growth this year. It must be noted that Infosys’ stock has risen 15% since June 12, when Sikka took charge as the company’s CEO. But year-to-date, it has gained just 5%. On the other hand, its rivals like TCS, Tech Mahindra and HCL Technologies have gained 23-33% in the same period.

The second quarter is a seasonally better one for the IT sector. Analysts expect a further increase in Infosys’ growth this quarter. A leading business news channel has predicted Infosys’ growth for the coming quarter. According to them, company’s profit after tax is likely to increase 3.43% to Rs 2,985 crore from Rs 2,886 crore at present; rupee revenue is projected to grow 4.2% quarter-on-quarter to Rs 13,307 crorel; and dollar revenue is likely to grow 2.9% to $2,195 million as compared to 2% in the previous quarter.

Also, Infosys’ earnings before interest and tax (EBIT) is projected to increase 6% on a sequential basis to Rs 3,407 crore; and company’s margin may increase 46 basis points to 25.6% during the quarter.