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Infosys — India's second largest software exporter by market value — is all set to report its quarterly results on Sunday. Investors will closely monitor the IT giant's margin and revenue growth guidance at a time when elevated levels of attrition leading to higher employee costs are denting the profitability of the space, despite rising spending on technology across sectors.

They will also track the Infosys management's commentary on deal wins and tech spending.

Analysts in a CNBC-TV18 poll estimate the net profit of Infosys for the April-June period at Rs 5,677 crore. That would mark a decline of 0.2 percent compared with the previous three months.

They expect Infosys to report revenue of $4,423 million, which would mean a 3.3 percent rise compared with the previous three months.

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Analysts expect Infosys to fare better than peers in terms of revenue growth, with revenue growth in constant currency terms estimated at 4.5-4.7 percent for the quarter ended June.

Analysts in the CNBC-TV18 poll expect Infosys to retain its revenue growth guidance for the year ending March 2023 at 13-15 percent. They peg the margin guidance at 21-23 percent, after the company lowered it by 100 basis points in the January-March period.

Many analysts have had a cautious view on India's IT sector for the past few months. Expensive valuations and margin headwinds are two primary reasons for the sector's denting appeal, Shibani Sircar Kurian, Senior Executive VP and Head-Equity Research at Kotak Mahindra AMC, told CNBC-TV18.

"If you look at this quarter's earnings, actually margins have seen even more pressure than what was earlier anticipated. Therefore, it is possible that margin trajectory could possibly be bottoming out, but improvement in margins will take some time," said Kurian, who prefers largecap IT to midcap stocks.

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"The other key factor where midcap IT is concerned is client concentration and vis-a-vis largecaps, midcaps see far more client concentration and hence the risk there in terms of a slowdown is larger," he said.