Infosys Q3 profit likely to grow 15-18%, but margin may drop

NEW DELHI: IT major Infosys may report a strong set of numbers for the third quarter of the current financial year, with incremental revenues coming from the Vanguard deal. Margins may take a hit on wage hikes for junior employees during the quarter. Analysts said the IT major may raise its annual revenue growth forecast and the management’s take on how margins will play out in the context of large deals will be watched closely.

Brokerage Nirmal Bang noted that Infosys’s CEO had earlier suggested, in a media interaction, that the IT firm aspires to clock double-digit growth in FY22. “We need to see if there is more colour likely to be given after a series of large deal wins in recent months,” it said. This brokerage sees revenue for the company rising 5.3 per cent on a year-on-year basis (3.1 per cent quarter-on-quarter) to Rs 25,172 crore in the third quarter.