Infosys Q4 Earnings: 5 Things To Watch Out

Infosys, India's second biggest IT services exporter, will report its March quarter results on Thursday (April 13), kicking off the earnings season. Infosys in a release said that earnings will be announced around 9 am, followed by management's interaction with the media from 10 am. Infosys earnings and guidance will be closely watched by investors and the analysts as the IT sector is going through a turbulent phase amid crackdown on H-1B visas by the Trump administration and broad changes in the technological landscape. Infosys numbers will also be closely watched as it sets the tone for the entire Indian IT industry's earnings. Here are key things to watch out in Infosys earnings:

Infosys' net profit is likely to be subdued in the March quarter. Analysts polled by NDTV Profit expect its net profit to decline 3.85 per cent sequentially to Rs 3,565 crore compared to Rs 3,708 crore in the December quarter.

Infosys' dollar revenue, which is widely tracked by analysts, is seen rising between 1.2-1.5 per cent over its December quarter revenue of $2,551 million. In the December quarter, the Bengaluru-based outsourcer had reported a degrowth of 1.4 per cent in dollar revenue due to cancellation of RBS deal.

Other than revenue and net profit, analysts will also be watching for Infosys' revenue guidance for the current fiscal. "Given the slowdown in revenues, guidance to be important," Deutsche Bank said on Infosys' Q4 expectations. Analysts polled by NDTV Profit expect Infosys to give revenue growth guidance between 7-9 per cent in constant currency compared to 8.4-8.8 per cent guidance for the last fiscal.

Analysts at IDBI Capital Markets expect the IT sector to continue to face headwinds from muted global macros, risks of adverse visa rules in the US and transition of existing business to new technologies. The brokerage expects constant currency revenue growth guidance of 7-10 per cent for Infosys.

In February, Infosys had sought approval of its shareholders to change Articles of Association, which included a provision for share buyback. Investors will be watching for any update on share buyback after its bigger rival TCS and Cognizant announced share buybacks to boost shareholder's return. There is a possibility of a share buyback announcement, said Morgan Stanley.