Infosys Technologies
Infosys had projected that it will top Rs 5,229 crore (Rs billion) for the current quarter, a growth of over 7.7 per cent quarter-on-quarter (q-o-q). While the company might well meet this number, markets will keenly watch out for guidance for the December quarter and its full year forecasts when the IT bellwether announces its Q2 numbers on October 10.
Operating profit margins (OPM) in the current quarter are expected to hover around the 30 per cent mark or improve as the company will not have to contend with higher quantum of wage hikes and visa costs that dented OPMs by 210 bps to 30.4 per cent in the June quarter and get the benefit of rupee depreciation due to lower hedges.
Given its hiring plans, utilisation rates are expected to hover around the 70 per cent mark achieved in the last quarter or drop lower. While BFSI and retail grew 4 per cent each in the previous quarter, going ahead this might be difficult to achieve.
At Rs 1,480, the scrip is trading at 14.4 times its FY09 earnings of Rs 100.50. While the price is reasonable, investors will get an opportunity to buy at lower levels due to the uncertainty prevailing over the credit crisis and market conditions.
Image: N R Narayana Murthy, chief mentor and non-executive chairman of Infosys Technologies. | Photograph: Dibyangshu Sarkar/AFP/Getty Images
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