Q3FY21 has seen currency volatility, though much smaller, cross-currency movement (positive for reported USD revenue growth) and INR appreciation (negative on EBIT margin).

According to IDBI Capital Markets & Securities, "Q3FY21 is generally a seasonally weak quarter. However, given the traction in digital solutions and large-deals we forecast a much better QoQ growth vs. previous years. Amongst the large-caps, we forecast revenue growth of between 2.1% and 3% QoQ in CC terms with Wipro (WPRO) outperforming it peers after a long time. We forecast only Tech Mahindra (TECHM) to report a QoQ improvement in EBIT margin."

Infosys, India's second largest software exporter, is going to announce its quarterly earnings on January 13. IDBI Capital forecasts revenue growth of 2.4% QoQ in CC and cross-currency benefit of 40bps. It expects EBIT margin to decline by 70bps QoQ impacted by the ramp-up of the Vangaurd deal and no cost reversals as in Q2.

"We expect Infosys to increase its FY21 revenue growth guidance to 3-4% in CC and maintain its EBIT margin guidance. Large deal wins (expect TCV of USD 2 billion+) and pipeline/pricing environment; outlook on EBIT margin in the current uncertainty; Attrition level and commentary on reducing the same; Commentary on capital allocation and M&A, " the broking firm said.

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