IT major Infosys Ltd is expected to report 5-13 per cent year-on-year (YoY) rise in net profit for the December quarter compared with 5-6 per cent rise in sales. Margin is seen expanding 30-90 basis points YoY. A few analysts believe Infosys could upgrade FY25 revenue growth guidance to 4.25–4.75 per cent in constant currency (CC) YoY from 3.75-4.5 per cent. They largely see margin guidance to be maintained at 20–22 per cent.
Infosys results would be out post market hours, around 3:45 pm. Among major IT firms, Tata Consultancy Services Ltd (TCS) and HCL Technologies Ltd have already reported quarterly results. While TCS results were muted but deal wins and commentary were positive, HCL Tech saw its shares plunging after Q3 disappointment. Wipro will announce its results on Friday, January 17.
Elara Securties expects Infosys to report 5.4 per cent YoY rise in net profit at Rs 6,437 crore in the December quarter compared with Rs 6,106 crore in the same quarter last year. Revenue for the quarter is seen rising 4.8 per cent YoY to Rs 40,698 crore from Rs 38,821 crore. Dollar revenue is seen falling 1 per cent QoQ (up 3.9 per cent YoY) to $4,845 million. Ebit margin is seen expanding 30 basis points (bps) YoY to 20.8 per cent from 20.5 per cent.
The ask rate to reach lower-upper range of FY25 revenue guidance is minus 0.7 per cent and 0.25 per cent, as per Elara's calculation in constant currency (CC) terms.
Nuvama sees net profit for Infosys rising 12.9 per cent YoY to Rs 6,893 crore on 6.2 per cent YoY rise in sales at Rs 41,246 crore. It sees Ebit margin at 21.4 per cent, up 90 basis points YoY.
"We expect revenue growth to be 0.8 per cent QoQ in CC terms and flat QoQ in dollar terms. EBIT margin is likely to improve 30 bps QoQ driven by project Maximus, partially offset by furloughs. We expect Infosys to upgrade FY25 revenue growth guidance to 4.25–4.75 per cent CC YoY (from 3.75-4.5 per cent) and maintain margin guidance of 20–22 per cent," it said.
PL Capital sees Infosys to further narrow its guided band and marginally uptick the upper band by 25 basis points on improving underlying sentiment. Adjusted profit is seen at Rs 6,800 crore, up 11.2 per cent. Sales are seen at Rs 41,190 crore, up 6 per cent.
MOFSL said deal total contract value (TCV) may remain robust in 3Q, and demand commentary should improve. It expects flow business to recover in 2025, aiding growth. This brokerage expects Infosys to maintain its guidance of 3.75 per cent to 4.5 per cent for the full year. It sees profit rising 12 per cent to Rs 6,800 crore and sales 6.7 per cent YoY to Rs 41,400 crore.