Will Infosys surprise on 15th of April ?

Investors will be keenly watching Infosys results on Friday when the markets will be shut due to a public holiday on occasion of Ram Navami. Infosys will be announcing its fourth quarter results and its performance for the entire year, thus kicking off the earnings season for IT companies.Traditionally Infosys results are keenly watched by the markets as it talks a lot about the industry and its growth trajectory.

Infosys is trading in negative zone and is down by 0.77 percent at 1173, while BSE Sensex is trading up by more than 500 points. March traditionally is a weak quarter for IT companies and the IT companies are expected to report modest growth in revenues. Infosys is expected to outperform the sector by cloaking higher than industry average growth in revenue for coming year. According to Jefferies, a broking firm, Infosys should grow by 11 to 13 percent y-o-y which beats the 10 percent growth for industry, pegged by NASSCOM.

Ever since Vishal Sikka has been at the helm of the company, Infosys has managed to beat the expectations aggressively. Vishal Sikka joined Infosys in August 2014 and since then Infosys has been outperforming its peers and industry benchmarks i.e BSE IT index and BSE Sensex as well. Infosys has gained approximately 38 percent since Vishal Sikka has been hired. According to a report in Mint, analysts' estimates suggest net profit at Rs.3500 crore and sales at Rs.16,415 crore.

18th April will be a day to watch as the markets will react to the Infosys results and TCS will be announcing its results. Going by the earnings announcements in recent history for Infosys, coming announcement may not surprise markets on either side and they may witness a relatively calmer session on 18th of this month when the stock reacts to the earnings, as against the volatility they are now exhibiting.