Infosys, TCS net seen up 30%

Revenues expected to surge 10% and 8%, q-o-q, respectively.

The market is expecting technology bellwether Infosys Technologies to post a 30 per cent year-on-year growth in net profit.

Sequentially, net profit is expected to go up by 10 per cent. Big brother Tata Consultancy Services is also expected to post a 30 per cent growth in net profit compared to the same quarter last year, but sequential growth could be a shade lower, analysts said.

While Infosys revenues are expected to swell 10 per cent, TCS may see its revenues increase 8 per cent quarter on quarter.

Broking firm Motilal Oswal has forecasted revenues of Rs 2,282 crore and net profit of Rs 590 crore for Infosys Technologies.

The lower end of the net profit estimated for Infosys by other analysts is Rs 570 crore.

For TCS, revenues and net are expected to be Rs 2,900 crore and Rs 670 crore, respectively.

Another domestic broking firm SSKI expects TCS to clock revenues of Rs 2,925 crore (8 per cent q-o-q) and net profit of Rs 684 crore (10.60 per cent).

For the full year, analysts expect the company to meet its estimated earnings of Rs 89 per share.

Some bullish estimates peg the figure at Rs 92. The full year earnings for TCS are estimated at Rs 61.

"We expect a net profit jump of 30 per cent, y-o-y, and 9.7 per cent, q-o-q. But Infosys could go beyond our expectations also," said Ambareesh Baliga, vice-president, Karvy Stock Broking Ltd. Vice-president of K R Choksey Jigar Shah echoed a similarly positive sentiment.

"Last time, we had a surprise element, and the scrips did not perform well, post-results. But this time, the market is still positive about their results," said M Ramalingam, chief executive officer, ISE Securities and Services Ltd.

Gagan Banga, executive director, Indiabulls, said, "There is tremendous amount of expectation from tech stocks. If the index has to move, these scrips need to deliver. We expect 25-30 per cent returns (from them)."

In today's trade, Infosys was up 2.06 per cent to Rs 2,622.45 on the Bombay Stock Exchange. TCS ended at Rs 1,449, up Rs 3.85.