Infosys Limited is gearing up to unveil its fourth-quarter financial results on Thursday, April 18. The company, under the leadership of Salil Parekh, is expected to reveal a nearly steady profit for the quarter, with sales projected to grow modestly by 3-4% year-on-year (YoY).
Key Insights from Sharekhan:
According to Sharekhan, Infosys is likely to witness a 3.1% YoY increase in sales, reaching Rs 38,605 crore compared to Rs 37,441 crore. However, profits are anticipated to dip slightly by 0.4% to Rs 6,102 crore from Rs 6,128 crore YoY.
Earnings Announcement Details:
The announcement is scheduled for around 3:45 pm IST on April 18, followed by a press conference with Infosys' leadership team at 4:30 pm IST, streamed live on their Investor Relations website. A 60-minute earnings conference call will take place at 6:00 pm IST, where senior management will discuss the company's performance and engage with participants.
Analyst Expectations:
Analysts foresee Infosys' FY25 constant currency revenue guidance to range between 4-7%. The company is expected to maintain a cautious yet positive outlook on demand, contrasting FY24's performance.
Financial Projection by Sharekhan:
Sharekhan predicts a marginal decline of 0.5% in constant currency revenue due to lower contributions from large deals and discretionary spending weaknesses. Despite margin challenges from wage hikes, the impact may be offset by one-off events like the McCamish system Cyber incident.
In summary, Sharekhan projects a 3.1% YoY sales growth to Rs 38,605 crore and a slight profit decrease to Rs 6,102 crore YoY, with a margin of 23.7%.
Brokerage Insights:
Nirmal Bang Institutional Equities expects Infosys to maintain revenue growth guidance for FY25 in the 4-7% CC range, with margins similar to FY24. They anticipate a 1.2% QoQ revenue growth in CC terms and an EBIT margin expansion to 20.7%.
Conclusion:
The anticipation is high as Infosys prepares to unveil its Q4 results amidst a dynamic market landscape, with stakeholders eagerly awaiting insights into its performance and future prospects.