Infosys has trimmed most of its early gains and is now trading higher by less than 1% at Rs 2,520, falling nearly 2% from intra-day high ahead of it’s first quarter (April-June) earnings tomorrow.
The stock opened at Rs 2,530 and hit a high of Rs 2,563 on BSE. A combined 2.24 million shares have changed hands on the counter till late noon deals on BSE and NSE.
Analysts expect the company to retain its 6-10% US Dollar revenue growth guidance for FY2014.
The return of Mr. Murthy to Infosys has raised hopes on the medium-to-long term prospects of the company. However, the near term scenario remains challenging, says analyst.
“We expect Infosys to retain its FY14 revenue growth guidance of 6-10%. Outlook on margin incorporating tailwinds from renewed focus on commoditized services and recently announced wage hikes, will in our view suggest deterioration before an improvement. Cut in guidance or material dip in Q1EBIT margins below the fourth quarter levels of 23.6% will be taken negatively, in our view,” suggest Ashwin Mehta and Pinku Pappan of Nomura Equity Research in a report dated July 4.
“The company’ EBITDA (earnings before interest, tax, depreciation and amortization) margin is expected to decline 140 bps quarter-on-quarter due to the impact of wage hikes for the global sales team, ramp-up on deals with low upfront margins and visa cost,” suggest analysts at Kotak Institutional equities in a note.
The stock opened at Rs 2,530 and hit a high of Rs 2,563 on BSE. A combined 2.24 million shares have changed hands on the counter till late noon deals on BSE and NSE.
Analysts expect the company to retain its 6-10% US Dollar revenue growth guidance for FY2014.
The return of Mr. Murthy to Infosys has raised hopes on the medium-to-long term prospects of the company. However, the near term scenario remains challenging, says analyst.
“We expect Infosys to retain its FY14 revenue growth guidance of 6-10%. Outlook on margin incorporating tailwinds from renewed focus on commoditized services and recently announced wage hikes, will in our view suggest deterioration before an improvement. Cut in guidance or material dip in Q1EBIT margins below the fourth quarter levels of 23.6% will be taken negatively, in our view,” suggest Ashwin Mehta and Pinku Pappan of Nomura Equity Research in a report dated July 4.
“The company’ EBITDA (earnings before interest, tax, depreciation and amortization) margin is expected to decline 140 bps quarter-on-quarter due to the impact of wage hikes for the global sales team, ramp-up on deals with low upfront margins and visa cost,” suggest analysts at Kotak Institutional equities in a note.
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