Information Technology major, Infosys, will share its second quarter results on Friday. But speculations of a ‘better than expected’ performance had seen the share price of the company rise on Thursday.
Though it was expected to be a flat quarter, analysts told Express that “they were not expecting Infosys to post a disappointing quarter.”
While announcing Q1 results, the company’s decision to slash their guidance by almost 50% from their earlier projection of 8-10% to 5%, had seen their shares crash almost 10%. Further, the company had also decided against making guidance on a quarterly basis. The company posted Q1 revenue of Rs 9,616 crore for the quarter, while the net profit was Rs 2,289 crore, registering a growth of 32.9%.
Financial advisory firm, Morgan Stanley, in their quarterly report said that they expected an average of 3-4% qoq USD revenue growth for the IT companies in Q2. “We expect Infosys’s (OW) revenue growth trajectory to be more consistent and predictable from Q2 onwards, with benefits of its acquisitions further helping 2H growth,” their report on October 5, 2012, said.
Ankita Somani of Angel Broking told Express, “the company said that there were delays in wrapping up of deals last quarter. But If the company has completed it by this quarter, this would mean that the company would reduce their gap with TCS”.
On whether their recent acquisition was the reason for better performance, she said, “that acquisition was a very small one and not sure if that had anything to do with better expectations.”