At the same time, Infosys is likely to hike its Earnings Per Share (EPS) guidance toRs. 174-177 (from Rs. 159-161) to take into account the depreciation in the local currency during Q1 FY13.
Most IT analysts expect Infosys Ltd. to cut its FY13 USD revenue guidance to 6.5-8.5% YoY (from 8-10%) on adverse cross currency movements when it declares its Q1 FY13 performance on Thursday morning.
At the same time, Infosys is likely to hike its Earnings Per Share (EPS) guidance to Rs.174-177 (from Rs. 159-161) to take into account the depreciation in the local currency during Q1 FY13.
Q1 FY13 is expected to show clear divergence in terms of volume performance for the Top 4 IT players, says India Infoline Research.
While on one hand TCS and HCL Tech are expected to post a strong constant currency (cc) growth of 3.5-4% QoQ, Infosys and Wipro are expected to be in-line with their guidance, posting 1% and 0.5% QoQ constant currency growth, respectively, says India Infoline Research.
Cross currency movements are also expected to have a varied impact on the top four IT companies, with Wipro and TCS having higher impact of 1.2-1.9% (due to higher exposure to rupee billing) as compared to Infosys and HCL Tech (0.5% -1%), according to India Infoline Research.
The rupee depreciation of 7.8% during Q1 FY13 is expected to boost margins by 200-300bps, says India Infoline Research. At the same time, higher visa rejections as well as increased visa fees by the USCIS could lead to an adverse impact on a yoy basis.
TCS (due to full salary hikes) and HCL Tech (due to one-month salary hike and higher deal transition costs) are expected to lag Wipro and Infosys in OPM performance, says India Infoline Research.
SOURCE : IIFL
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