Infosys Ltd is likely to report 10-15 per cent year-on-year jump (YoY) in net profit for the September quarter on a 5 per cent growth in sales. The growth would be aided by In-tech acquisition. Revenue in constant currency terms is expected to beat tier 1 peers on sequential basis. The Salil Parekh-led IT major may also increase its revenue guidance for the financial year, even as it may retain its margin guidance. For the quarter margin may expand, but marginally.
All eyes would be on interim dividend, the commentary on FY25 demand environment, especially discretionary spending. Deal TCVs and pipeline, margin levers, attrition, pricing will all be on investor radar today.
"Although investors are now far more sanguine about the sector, evidence of recovery in growth, deal TCVs and management commentary would still be needed to lock-in the growth recovery narrative," said Kumar Rakesh, Analyst - IT & Auto, at BNP Paribas.
PhillipCapital expects Infosys to report 10.2 per cent YoY rise in net profit at Rs 6,844.40 crore on 4.8 per cent YoY rise in sales at Rs 40,867 crore. Ebit margin is seen expanding 20 basis points to 21.4 per cent YoY. Dollar revenue is seen coming in at $4,877 million, up 3.4 per cent YoY or 3.5 per cent QoQ. It sees a revenue growth of 2.6 per cent QoQ in CC on account of continued ramp up of large deals like in Q1, in-tech integration and recovery in BFSI vertical.
"Margins are expected to improve by 30 bps helped by strong growth and operational efficiencies (Project Maximus. We expect Infosys to increase FY25 growth guidance to 4-5 per cent YoY in CC from 3-4 per cent on strong H1 and low ask rate in H2. We expect EBIT margins guidance to stay intact at 20-22 per cent," Phillip Capital said.
Sharekhan sees Infosys profit at Rs 6,856 crore, up 10.4 per cent. It sees sales growing 5.1 per cent YoY to Rs 40,987 crore. Operating profit margin is seen at 24.3 per cent, up 10 per cent YoY.
Infosys is expected to report revenue growth of 3.2 per cent in CC terms QoQ, with 70 bps cross-currency tailwinds, leading to a 3.9 per cent QoQ reported growth aided by recovery in BFSI.
Emkay Global expects Infosys to raise its revenue growth guidance to 3.5-4.5 per cent CC YoY (current 3-4 per cent) for FY25, while retaining EBIT margin guidance of 20-22 per cent.
"We expect revenue growth of 3.2 per cent QoQ in CC terms and 3.6 per cent QoQ in dollar terms - with 1 per cent contribution from Intech acquisition. EBIT margin is likely to improve 35 bp QoQ driven by operating leverage and project maximus. We reckon Infosys shall upgrade revenue growth guidance to 3–5 per cent CC YoY (from 3–4 per cent) and maintain margins of 20–22 per cent for FY25," Nuvama said.
This brokerage sees Infosys Q2 profit at Rs 7,154 crore, up 15.2 per cent YoY. It sees sales rising 5.2 per cent at Rs 41,023 crore.