What to expect from Infosys result?

India's second largest software service firm Infosys will announce its year ending quarterly results on Friday. Last quarter it's performance in traditionally weak December quarter, beats the expectations and surprised the market. The company beat the revenue expectation for third consecutive quarter in December. Because of three consecutive surprise from Infosys stake from its year ending result is high this time.

On financial front, we expect the consolidated net revenue from operations will lie on the lower end of the revenue guidance and will grow 6 per cent QoQ sequentially translating into Rs 17690 crores revenue. The increase in revenue is on back of better volume growth in financial services and modest growth in manufacturing. The margins will be under pressure due to contraction in application and development. We are modelling operating profit margin of 23 per cent this quarter. We expect EPS in the range of 16 to 16.5 per cent however the net profitability will come down sharply to 15 per cent.

Last quarter the consolidated net revenue from operations of Infosys reached Rs 15902 crores in Q3FY16 compared to Rs 15635 crores in Q2FY16 an increase of 1.70 per cent quarter on quarter (QoQ). The operating profit stood at Rs 3959 crores this quarter compared to Rs 3993 crores in Q2FY16, a decrease of 0.85 per cent QoQ. The employee expenses of company increased by 2.57 per cent QoQ to Rs 8772 crores from Rs 8558 crores in Q2FY16. The net profit stood at Rs 3465 crores in Q3FY16 compared to Rs 3398 crores in Q2FY16, an increase of 1.97 per cent QoQ.

Infosys is engaged in consulting; technology; outsourcing; and next-generation services. Its segments are Financial Services and Insurance; Manufacturing; Energy and utilities; Communication and Services; Retail; Consumer packaged goods and Logistics; Life Sciences and Healthcare; and Growth Markets.