The Infosys Ltd. logo is displayed on security tape at the company’s campus in Electronics City in Bangalore, India. (Photographer: Vivek Prakash/Bloomberg)

Infosys Q2 Earnings: Here’s What Sharekhan Says Investors Should Focus On 

Infosys Ltd. will post "decent" quarterly earnings boosted by rupee tailwinds, according to Sharekhan.

"Margins are expected to be 30 basis points higher, sequentially,” said Sanjeev Hota, associate vice president of research at the homegrown brokerage. However, he said, the full impact of the rupee depreciation would be negated by a hike in salaries of senior management.

The brokerage expects a profit growth of 11.4 percent quarterly and 8 percent yearly. Hota said the Infosys management’s commentary on the banking and financial services segment and the North American market will be keenly awaited.

The software exporters achieving its annual growth guidance of 6-8 percent for the financial year ending 2019 could be difficult if it fails to deliver results in BFS and North American markets this quarter, he said.

Sector Outlook

Hota is bullish on the IT sector for the next 12-15 months citing the impact of the weakening rupee and overall positive environment.

His pecking order

  • In large caps: TCS, Infosys, HCL Technologies and Tech Mahindra
  • Mid caps: L&T Infotech and Persistent Systems
  • Small caps: Mastek

Watch the full interview here