Infosys Q4 results preview: Sharekhan sees Infosys sales rising 3.1 per cent YoY to Rs 38,605 crore from Rs 37,441 crore. Profit is seen falling 0.4 per cent to Rs 6,102 crore from Rs 6,128 crore YoY.
Infosys Q4 earnings preview: Nirmal Bang sees Q4 deal wins in the $2-$3 billion range. Large deal TCV stood at $3.2 billion in the December quarter and $7.7 billion in Q2FY24.
The Salil Parekh-led Infosys Ltd is likely to declare a flattish profit for the March quarter on a muted growth 3-4 per cent year-on-year (YoY) growth in sales. Ebit margin for the second largest software exporter is seen contracting marginally on a sequential basis, thanks to wage hikes during the quarter. All eyes would be on Infosys FY25 constant currency (CC) revenue guidance. For now analysts see the guidance of 4-7 per cent and modestly positive demand commentary vis-à-vis FY24.
The Bengaluru-based digital services and consulting is scheduled to announce its results on April 18, Friday, at around 3:45 pm IST. Earlier this week, IT major Tata Consultancy Services (TCS) reported a better-than-expected results.
Infosys Q4 results timing
Infosys’ leadership team will be part of a press conference at 4:30 pm IST. The participating executives would be addressing questions from the media during the interaction, which will be streamed live on the Investor Relations section of Infosys website.
Earnings Q4 concall timing
Later in the day, Infosys will conduct a 60-minute conference call at 6:00 pm IST, “where the senior management will discuss company’s performance and answer questions from participants. To participate in the conference call,” Infosys said in a release.
Infosys Q4 results preview
Infosys is expected to report decline of 0.5 per cent in constant currency (CC) revenue due to weakness in discretionary spends and lower contribution from large deals, said Sharekhan that sees flattish EBIT margins for the quarter. Margin headwinds due to wage hike (1-month impact) may be offset by the one-off impact from McCamish system Cyber incident as it reverses in Q4FY24, it said.
Net-net, Sharekhan sees Infosys sales rising 3.1 per cent YoY to Rs 38,605 crore from Rs 37,441 crore. Profit is seen falling 0.4 per cent to Rs 6,102 crore from Rs 6,128 crore YoY. Margin is seen at 23.7 per cent against 24 per cent YoY, down 38 basis points.
Infosys FY25 CC revenue guidance
“We expect Infosys to hold out revenue growth guidance for FY25 in the 4-7 per cent CC range. We expect margin
guidance to be similar to FY24 (20-22 per cent EBIT margin). We think that risk on revenue is to the downside post the recent commentary of global IT Services players like Accenture, Capgemini and Cognizant,” said Nirmal Bang Institutional Equities.
This brokerage expects Infosys to report a revenue growth of 1.2 per cent QoQ in CC terms and sees cross currency tailwinds of 25bps.
“We expect EBIT margin to expand by 20bps QoQ to 20.7 per cent as the impact of salary hikes which were announced from 1st November 2023 will be lower in 4QFY24 and the one-off impact due to McCamish Systems in 3QFY24 will be reversed in 4QFY24. We believe that 4QFY24 TCV number will be in the $2-$3 billion range.
Large deal TCV stood at $3.2 billion in the December quarter and $7.7 billion in Q2FY24. This brokerage sees profit at Rs 6,147 crore and sales at Rs 61,371 crore ($7,391 million).
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