Synopsis: Infosys Ltd is poised to announce its Q3 results, with analysts forecasting a net profit rise of 5-13% YoY and a 5-6% increase in sales. Margin improvements are anticipated, with expectations of a 30-90 basis points YoY expansion. Analysts predict Infosys might upgrade its FY25 revenue growth guidance while maintaining margin guidance. The results are expected post-market hours at 3:45 pm.
As the December quarter unfolds, Infosys Ltd, a key player in the IT sector, is set to release its Q3 results post-market hours, around 3:45 pm.
Analysts anticipate a 5-13% year-on-year (YoY) increase in net profit and a 5-6% growth in sales.
Margins are projected to expand between 30 and 90 basis points YoY, reflecting the company’s operational resilience.
Industry Peers Update: The quarterly results of major IT firms, including Tata Consultancy Services Ltd (TCS) and HCL Technologies Ltd, have already been disclosed.
TCS’ performance remained subdued but demonstrated optimism in deal wins and commentary.
Conversely, HCL Technologies faced investor disappointment, leading to a drop in its share prices. Wipro’s results are scheduled for Friday, January 17.
Analyst Projections for Infosys:
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Elara Securities: Predicts a 5.4% YoY rise in net profit, reaching ₹6,437 crore, up from ₹6,106 crore in the corresponding period last year. Revenue is expected to grow 4.8% YoY to ₹40,698 crore, with dollar revenue declining 1% QoQ (up 3.9% YoY) to $4,845 million. EBIT margin is projected to expand by 30 basis points YoY to 20.8%.
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Nuvama: Forecasts a 12.9% YoY net profit increase to ₹6,893 crore and a 6.2% YoY sales rise to ₹41,246 crore. EBIT margin is expected to improve by 90 basis points YoY to 21.4%. Revenue growth is estimated at 0.8% QoQ in constant currency terms, with no change QoQ in dollar terms.
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PL Capital: Anticipates adjusted net profit at ₹6,800 crore, up 11.2% YoY, and sales at ₹41,190 crore, reflecting a 6% YoY growth. Analysts believe Infosys could narrow its guidance band and slightly elevate the upper limit by 25 basis points.
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Motilal Oswal Financial Services Ltd (MOFSL): Expects robust deal total contract value (TCV) in Q3 and improved demand commentary. Profit is projected to rise 12% YoY to ₹6,800 crore, while sales may increase by 6.7% YoY to ₹41,400 crore.
FY25 Guidance and Market Expectations: Several analysts foresee Infosys revising its FY25 revenue growth guidance to 4.25-4.75% in constant currency terms from the current 3.75-4.5%. Margin guidance is likely to remain stable at 20-22%. The "Maximus" project is expected to contribute positively, offsetting some seasonal furlough impacts.
Conclusion: As Infosys prepares to unveil its December quarter results, investor and market focus remains on potential revenue guidance upgrades, robust deal wins, and margin improvements.
The IT giant’s ability to adapt to global demand challenges and leverage operational efficiencies will be crucial in shaping its performance trajectory for FY25.
Insights from its peers' results add context to industry dynamics, with Infosys’ outcomes set to provide a clearer picture of the IT sector’s future prospects.
Disclaimer: The above information is intended solely for informational purposes and should not be considered as investment advice. Readers are strongly advised to consult a certified financial advisor before making any investment decisions.
