The Salil Parekh-led Infosys Ltd is all set to report its June quarter results at around 3.45 pm today. The second-largest domestic IT software exporter will host a press conference at 4.30 pm and a 60-minute conference call later in the day at 6 pm. The IT major is seen reporting up to 10 per cent year-on-year (YoY) rise in net profit for the June quarter on a muted single-digit growth in revenue.
Infosys may report revenue growth of 2-2.5 per cent sequentially in constant currency (CC) terms and 2-2.2 per cent in dollar terms. Margins are seen flattish YoY but up sequentially, as Infosys had margin impact of 1 per cent in Q4 due to renegotiation and rescoping of a BFSI client. Order wins are seen at $5 billion. Analysts see better management commentary but believe the IT firm may retain its revenue and margin guidance for FY25.
Nuvama Institutional Equities sees profit for Infosys rising 10.2 per cent YoY to Rs 6,551 crore on 2.6 per cent YoY rise in sales at 38,918 crore. Ebit margin is seen at 20.8 per cent, up 70 basis points over March quarter due to operating leverage and exceptional item in Q4. "We reckon Infosys shall maintain revenue growth guidance of 1–3 per cent CC YoY and margins in the 20–22 per cent range for FY25, it said.
ICICI Securities is building in 2 per cent revenue growth in both dollar and CC terms. It expects some traction in Hi-tech, BFSI (from deals announced in Q1 was 2 times that of Q4FY24) and liberty deal ramp up. It anticipate 3.5 per cent YoY dollar growth for FY25; with 100 bps inorganic revenue contribution from in-semi. "Deal pipeline is strong and deals won in previous quarter are ramping up as expected. The number of key deals have also doubled against Q4FY24. We expect order book to be in the range of $5 billion. Infosys completed In-semi acquisition (factoring in 4.5 million quarterly run rate in Q1). In-tech acquisition is expected to close in H1FY25," it said while expecting Q1 profit at Rs 6,283 crore, up 5.7 per cent. Sales are seen at Rs 38,840 crore, up 0.8 per cent.
Antique Stock Broking forecast a CC revenue growth of 2 per cent for Infosys, with a marginal headwind from cross currency. The growth should be led by ramp-up in the telecom and BFSI sectors, while sequential manufacturing growth should remain muted, it said.
"The company should be able to maintain FY25 revenue growth guidance of 1-3 per cent in CC terms and margin growth guidance of 20-22 per cent," it said.