Analysts predict bright Q3 results; Infosys to show report card today | business | Hindustan Times
Today in New Delhi, India
Dec 06, 2016-Tuesday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

Analysts predict bright Q3 results; Infosys to show report card today

business Updated: Jan 11, 2010 21:26 IST
Sandeep Singh
Sandeep Singh
Hindustan Times
Highlight Story

With good news pouring in from the manufacturing, sales and export fronts, market analysts predict strong results for the October-December quarter, as Infosys kicks off the result season today.

The third quarter was notable for an upswing in automobile sales. Export growth also turned positive after 13 months while industrial output grew at a double-digit pace.

“I expect a strong result for the quarter ended December 2009. Till the third quarter, there was profit growth on account of cost cutting and softening of input costs. Topline expansion in this quarter will facilitate growth,” said Sudip Bandyopadhyay, President, global financial services, Spice Group.

The third quarter results will also get a boost from a lower base, as the same period in 2008-09 was impacted by the global financial crisis.

“The quarter ended December 2008 was a very bad one for India Inc, and that will push the year-on-year growth for the quarter,” said DD Sharma, vice-president research, AnandRathi Securities.

India Inc had also registered a strong year-on-year profit growth for the quarter ended September 2009 and the auto sector had grown in volume. However, there were concerns at the time about the flat growth in revenues.

“We expect profits to grow at around 30 per cent for the (third) quarter, considering that the base was low and the revenues too will witness growth, though it will be slow,” said Alex Mathews, Head of Research, Geojit Securities. “Auto and metal sectors are expected to do really well while telecom and real estate might come up with bad results.”

While the October-December period saw an upswing in demand along with stable but rising costs of oil and metals, India Inc is expected to feel the pressure of rising input costs in the January-March quarter, as metal and oil prices continue rising.

“The manufacturing sectors are likely to be under pressure (hereafter),” said Mathews.