Infosys Q3: These are the key factors to watch out for in the quarter

What will be most anticipated and watched will be the FY19 guidance. Brokerage houses such as CIMB, Ambit and Kotak expect Infosys to raise the lower end of the guidance so that FY19 constant currency guidance could be at 7-8 percent compared with 6-8 percent earlier.

Some brokerages such as Axis Capital and CLSA believe the company will retain its existing guidance. EBIT margin guidance of 22– 24 percent is likely to be maintained given the management is preparing for higher investments in the second half of 2018-19.

The company has also announced it will consider a special dividend and buyback when it meets for results on Friday. Given the capital allocation plan of Infosys, a $1.6-billion payout is expected.

Other factors to track will be the outlook on the budgets and expenditure for the 2019 calendar year. Accenture, a consultancy, had warned of moderation in client budget growth, the very high attrition rate of 22.3 percent as of September and whether the deal wins would continue (the first quarter at $2 billion and second quarter at $1.1 billion) and lastly, if the Banking, Financial Services and Insurance (BFSI) spend is accelerating.

Dollar revenues to rise 1 percent at $2,950 million vs $2,921 million.

Rupee revenues to increase 2.4 percent at Rs 21,105 crore ore vs Rs 20,609 crore

EBIT at Rs 4,978 crore vs Rs 4,894 crore.

EBIT percent at 23.6 percent vs 23.7 percent.

PAT to rise 0.12 percent at Rs 4,115 crore vs Rs 4110 crore.