Infosys shares trade flat ahead of Q2 results

NEW DELHI: Shares of Infosys were trading flat in morning trade on Tuesday ahead of its financial results for the quarter ended September 30, 2017. The company will announce its financial results post market hours around 3.45 pm (IST).

The scrip was trading 0.01 per cent down at Rs 939.60 around 10.05 am (IST). Shares of the IT major opened at Rs 945 and touched a high and low of Rs 947.50 and Rs 937, respectively, in trade so far. Benchmark BSE Sensex was up 110 points, or 0.34 per cent, at 32,617 at around the same time.

Brokerage firm Edelweiss believes that Infosys may report 1.40 per cent quarter-on-quarter (QoQ) fall in net profit at Rs 3,434.50 crore in Q2FY18 against Rs 3,483 crore in the sequential quarter ended June 30, 2017.

“EBITDA margin to contract by 90 basis points QoQ on account of wage hikes during the quarter, partially set off by operational efficiencies and absence of visa costs,” Edelweiss said in a research note.

According to Reliance Securities, Infosys may report revenue of Rs 17,560 crore in Q2FY18 over Rs 17,078 crore in Q1FY18. “USD revenue expected to rise by 3.6 per cent QoQ, revenue in constant currency growth is pegged at 2.4 per cent QoQ; margin likely to decline on wage hikes,” the brokerage house said.

One should zero in on progress in CEO recruitment, followed by changes in digital and growth strategy (if any), maintenance of FY18 guidance, deal wins, demand environment across verticals especially in financial services, pricing outlook and progress on automation and Nandan Nilekani’s progress on strengthening board processes and steps to prevent client leakages.