Infosys Technologies is seen reporting a fall in net profit on a sequential basis in Q1 June 2007 due to the surge in the rupee and wage hike. The revenue is expected to grow only a bit on a sequential basis. Infosys unveils Q1 results on Wednesday, 11 July 2007.
Market men also expect Infosys to revise downwards its rupee EPS guidance for FY 2008 to factor in the impact of the rupee’s rise. But they expect Infosys to raise revenue guidance in dollar terms. This will help it maintain the EPS guidance in dollar terms. Infosys had guided a 20% to 22% growth in EPS in FY 2008 and a higher 25.7% to 27.7% growth in EPS in dollar terms at the time of announcing FY 2007 (year ended March 2007) results.
On a consolidated basis, Infosys reported a 16% rise in net profit to Rs 1,144 crore in Q4 March 2007, from Rs 983 crore in Q3 December 2006. Sales rose 3% to Rs 3,772 crore in Q4 March 2007, from Rs 3,655 crore in Q3 December 2006.