Infosys, the second biggest software exporter of the country, is set to announce its results of the second quarter of FY 2018 today. The quarter ending on September 30th saw a lot happening within the country and one of the developments included elevation of co-founder Nandan Nilekani as chairman of the board at Infosys.
On Tuesday, October 24th, 2017, Nandan Nilekani will be once again coming forward to announce the quarterly results. After his appointment in August this year, this will be the first time that Nandan Nilekani is being seen with a lot of hope and excitement. This will be one of the biggest curiosity to see on how Nilekani plans to continue the legacy at Infosys at a time when the whole software market is not going too well in terms of revenue and profits. Along with that, he is also expected to share the progress report on the appointment of a new CEO, a post that has been running vacant since the resignation of Vishal Sikka earlier this year.
Being a pioneer in the software industry in India, Infosys has been setting a number of benchmarks with its business and profits. On a day when the company is set to announce the results of one of the most happening quarters in the recent times, here’s what we think shareholders and enthusiasts would be expecting out of the announcement.
- Revenue Projection: According to predictions by Reliance Securities, Infosys is set to report a revenue in excess to ₹17,550 Crores, which is marginally higher than ₹17,078 Crores, which was reported in Q1 FY2018. The brokerage house has expected the USD revenue to rise by 3.6% QoQ. Constant currency growth revenue is to rise at 2.4%. The report, however, has predicted a marginal decline in margins because of increased wages.
- Net Profit: Edelweiss, another brokerage firm has predicted that the software pioneer will report a slight fall in its net profit as compared to the figures it had announced for the last quarter ended June 30th. The company had reported a net profit of ₹3,483 crores in Q1 Fy2018, which is expected to go down at ₹3434.50 crores for the current quarter. It has also expected EBITDA to dip by 90 basis points on the account of increased wages in the ongoing quarter. Emkay global, another research firm has predicted the net profit to go up by 1% despite the weaker operations margin and profit. According to its report, the Q1 earnings were impacted by a one time write off of ₹71 crores.
- Earnings per share: For the small shareholders, this is one of the most significant announcements. According to the analysts, the company might announce a 1% increase in EPS (Earnings per share). Last quarter, it had announced ₹15.20 as EPS, which is expected to increase to ₹15.40 for the quarter in consideration.
The company is also expected to announce its plans for the upcoming time and one of the major updates that everyone is expecting is about the progress in the selection of new CEO. Infosys has been going through a tough time lately and an early announcement of the name of a new CEO might give relief to the shareholders and already struggling software market of the country. Also, an announcement on new projects and deals will prove to be a catalyst in stabilising the company on the Dalal Street.
The stock of Infosys has been performing quite stable in the last couple of trade sessions. The share was up 1.35% to close at ₹939.65 at the end of Monday and in the early trade on Tuesday, the stock was trading at a marginal dip of 0.29%