0

0

0

0

0

0

0

0

0

earnings | IST

Infosys, Wipro, Mindtree Q2FY22 preview: Street expects Infy to revise its revenue guidance by up to 15-17%

Mini

IT stocks like Infosys, Wipro and Mindtree will report their Q2FY22 numbers on Wednesday.

IT stocks like Infosys, Wipro and Mindtree will report their Q2FY22 numbers on Wednesday.
For Infosys, the street is looking at a dollar revenue growth of 5.5 percent, in constant currency terms a growth rate closer to 6.5 percent – the highest in organic terms in the tier-I companies. Revenue growth will be driven by the ramp-up of the large deal win with Daimler that they had.
Margins are expected to come under pressure, lower by 125 basis points (bps) sequentially on the back of wage hikes. The key to watch will be whether the company upgrades its revenue guidance.
The street expects Infosys to revise its revenue guidance up to 15-17 percent.
Wipro is the stock, which has seen the biggest rerating, the stock is up 70 percent year-to-date versus Infosys or Tata Consultancy Services (TCS) which have gained about 35 percent and 40 percent respectively.
Constant currency revenue growth for Wipro is seen up 7 percent sequentially at the upper end of the company’s own guided band. Revenue growth for Wipro will be driven by the acquisitions - the acquisitions of Capco as well as Ampion. The organic revenue growth will be lower at 3.5 percent. The key will be their Q3 guidance which is seen at 2-4 percent.
In the midcap space, it is Mindtree, which is the most expensive midcap IT company. It is up 150 percent so far this year. It trades at 50 times FY22 P/E, 43 times FY23 P/E but growth rates are expected to be very strong - 8.5 percent in dollar terms and in constant currency terms it could be a sequential revenue growth of 10 percent.
Watch the accompanying video of CNBC-TV18’s Reema Tendulkar for the key expectations.