Infosys Q1 preview: Revenue may fall 5%; eyes on demand impact due to coronavirus

Infosys is scheduled to report its earnings for the April-June quarter of FY21 on Wednesday. Brokerages expect the country's second largest IT firm by revenue to post weak numbers on account of coronavirus pandemic. Revenue could fall 5 per cent in the quarter under review, the analysts said.

According to ICICI Securities, Infosys may post a quarter-on-quarter (QoQ) fall of 5.2 per cent in dollar revenue in constant currency terms. The revenue, in rupee terms, is expected at Rs 22,902.3 crore, up 5 per cent on-year and down 1.6 per cent QoQ. Net profit may come at Rs 4,066.4 crore, up 7.1 per cent on-year.

Analysts at Antique Stock Broking say that the company may post a 9.2 per cent surge in on-year profit at Rs 4,146.50 crore as against Rs 3,798 crore in the corresponding quarter last year. The brokerage also said, in its note, that the investors would closely watch the company's commentary on demand impact and update on the long-term IT spending.

According to Emkay Global, Infosys may report a quarter-on-quarter (QoQ) fall of 4.2 per cent in the US dollar revenue. In rupee terms, the net sales may stand at Rs 23,251.1 crore, up 6.6 per cent on-year and down 0.1 per cent QoQ. Net profit is likely to be at Rs 4,006.6 crore, up 5.5 per cent on-year and down 7.3 per cent QoQ.

"We expect EBIT margin to contract 23 bps QoQ owing to lower growth, although substantially offset by a depreciating rupee. The commentary on new deal wins, digital growth rates and cost cutting initiative will be key," said Edelweiss Securities in its report.Also read: Trump rescinds F1 visa order; international students can now take online classes

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