Infosys Ltd, helmed by Salil Parekh, is expected to report a flat profit for the March quarter on a subdued revenue rise of 3-4 percent year on year. The second-largest software exporter's Ebit margin is expected to decline moderately sequentially as a result of pay increases in the quarter. All focus will be on Infosys' FY25 constant currency (CC) revenue projection. For the time being, economists expect 4-7 percent growth and somewhat higher demand than in FY24.
The Bengaluru-based digital services and consultancy firm plans to disclose its results on Thursday, April 18, at about 3:45 p.m. IST. Earlier this week, IT behemoth Tata Consultancy Services (TCS) posted better-than-expected earnings.
Infosys Q4 Results Timing
The Infosys leadership team will hold a news conference at 4:30 p.m. IST. During the conversation, the participating executives will answer media queries, which will be webcast live on Infosys' Investor Relations website.
Earnings Q4 Call Timing
Later in the day, Infosys will have a 60-minute conference call at 6:00 p.m. IST, "where senior management will discuss the company's performance and answer questions from participants." "To participate in the conference call," Infosys stated in a statement.
Infosys Q4 Results Preview
According to Sharekhan, Infosys is projected to announce a 0.5% fall in constant currency (CC) revenue owing to weakness in discretionary spending and reduced contribution from major agreements. EBIT margins are expected to be steady for the quarter. Margin headwinds from pay hikes (1-month effect) may be mitigated by a one-time impact from the McCamish system Cyber event, which will reverse in Q4FY24, according to the report.
Net-net, Sharekhan expects Infosys' revenues to increase 3.1% year on year to Rs 38,605 crore from Rs 37,441 crore. Profit is expected to dip by 0.4 percent to Rs 6,102 crore from Rs 6,128 crore last year. The margin is expected to be 23.7 percent, down 38 basis points from 24 percent year on year.
Infosys' FY25 CC revenue Projection
"We expect Infosys to provide revenue growth guidance for FY25 in the 4-7 percent CC range." We expect margin.
Guidance will be comparable to FY24 (20-22 percent EBIT margin). We believe that the risk to sales is negative after recent comments from major IT Services giants such as Accenture, Capgemini, and Cognizant," said Nirmal Bang Institutional Equities.
This firm forecasts Infosys to post a 1.2% QoQ sales gain in CC terms, with a cross currency tailwind of 25 basis points.
"We expect EBIT margin to increase by 20 basis points QoQ to 20.7% as the impact of salary hikes announced on November 1, 2023 will be lower in 4QFY24, and the one-time impact due to McCamish Systems in 3QFY24 will be reversed in 4QFY24. We think the 4QFY24 TCV will be in the $2-3 billion area," cited Nirmal Bang Institutional Equities.
