Infosys share price update:Q1 result expectation 2019-20
We expect financial services vertical to report robust growth. Revenues include one month of revenues from the Stater acquisition," Kotak said.
Infosys: the second largest software company is also likely to deliver around 3 percent growth in constant currency revenue with around 50 basis points cross currency headwinds, but pressures in margins due to wage hikes could impact profitability for the quarter ended June 2019.
"We expect financial services vertical to report robust growth. Revenues include one month of revenues from the Stater acquisition," Kotak said.
The brokerage expects EBIT margin decline of 110 bps due to:
- Wage revision for 85 percent of employees that will impact margin by 100 bps,
- Higher H-1B visa applications relative to the previous year that will result in additional costs and
- Rupee appreciation impact of 30 bps. "Margin impact will be offset to some extent through higher utilization and cost control measures."
Overall, the result is expected to be mixed “the brokerage house expects investors to focus on the pace of big deals keeping in view the strong trend of the last four quarters,,
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| formed bearish candle |
The attrition rate which has remained high, levers to defend margin, talent strategy in the US in light of higher H-1B visa applications in the current year, pricing outlook and BFSI revenue growth momentum.
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| support level 700 |
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