Infosys to announce Q3 earnings on January 13
InfosysBSE 0.72 %, India’s second-largest IT software services exporter, will announce its December quarter (Q3) earnings on January 13, 2017.
Most analysts tracking the sector expected a muted third quarter, which also happens to be a seasonally weak quarter. Industry lobby Nasscom has already cut the annual growth target for the sector to 8-10 per cent from 10-12 per cent.
In his New Year message to the employees, Infosys CEO Vishal Sikka cautioned the company’s 200,000-odd employees of the challenging time ahead. Sikka took over as CEO and MD of the IT firm in August 2014.
Reflecting on the year gone by, Sikka said: “Brexit, the US presidential election, demonetisation, cyber security, refugees and terrorism were the events that seriously changed the way we viewed the world. But perhaps the biggest disruption is the one that has been irreversible and unstoppable in our times is the accelerating force of technology and digitisation.”
The IT bellwether reported a muted performance in the September quarter. Infosys reported a 4.95 per cent quarter-on-quarter (QoQ) rise in net profit at Rs 3,606 crore for the quarter ended September 30. The second largest domestic IT firm by sales had reported a net profit of Rs 3,436 crore for June quarter.
The IT major revised its FY17 revenue growth guidance to 8-9 per cent in constant currency terms for the second time this financial year. Analysts feel Infosys will leave the FY17 constant currency guidance unchanged.
“We expect Infosys to leave its FY17 constant currency revenue growth guidance unchanged at 8-9 per cent though the reported currency guidance could be adjusted for the sharp cross-currency move,” JM Financial said in a note.
The company is likely to report a marginal 0.4 per cent rise in profit to Rs 3,619.30 crore.
“We believe the consensus view of caution on the sector opens a window for contrarian play, at least selectively, in players with a defensive business portfolio, stable/improving cash generation and inexpensive valuations,” it said.