Improvement in IT sector can be expected now: experts

Infosys maintains margins despite higher operating costs

Infosys Ltd posted a flat third-quarter net profit, beating analyst expectations, as the second-largest Indian software services provider maintained margins despite higher operating costs.

Here is what trade analysts have to say about Infosys' Q3 results:

Rikesh Parikh, Motilal Oswal Securities, Mumbai

"The numbers look better than estimated.

"The market was slightly predatory, given that the last two times the company has disappointed, but this time the organic guidance is better... which I think will be taken positively.

"A good start to the season."

Paras Adenwala, Capital Portfolio Advisors, Mumbai

"Some short covering can be expected. One will see improvement in Infosys in particular and for IT sector in general. My sense is that de-rating would stop in a while as bottom has been formed."

Jagannadham Thunnuguntla, SMC Global Securities, New Delhi

"Investors' expectations from Infosys were so low that even a slight uptick in the forecast will be cheered by the market, and that is helping their cause. The language of the guidance is also slightly better this time with the company saying they have a strong pipeline. This is something we are hearing after a long time.

"One cannot, however, make a firm opinion about the recovery with one set of data point and I think it will take couple of quarters to see whether the company is really on the path of recovery now."

Suresh Parmar, KJMC Capital Markets, Mumbai

"Infosys could provide better results in a relatively bad environment. The stock was beaten down in the past and the downside is limited. We advise clients to buy the stock for long-term."