Infosys' Q4 results on Wed: Analysts say IT major may report double-digit growth

Infosys, which is slated to announce its earnings on April 13, may report over double-digit growth in net sales and net profit on a year-on-year (YoY) basis for the quarter ended March 31, as several brokerage houses believe.

Shares of the IT major traded 1.51 per cent down at Rs 1,740 at around 11.45 am (IST), while the benchmark BSE Sensex was down 403 points, or 0.68 per cent, at 58,561.18 at around the same time.  

Brokerage house YES Securities believes that Infosys may post a 26.30 per cent and 20.30 per cent year-on-year (YoY) rise in net sales and net profit, respectively, in Q4FY22.
 
“Growth for Infosys to be broad-based across industry verticals with almost flat QoQ margin,” YES Securities said, adding Infosys may see 4.2 per cent quarter-on-quarter growth in top line and 5.1 per cent QoQ rise in profit after tax during the quarter.

Market participants should zero in on the commentary related to the outlook on attrition, IT budget, steps taken to manage supply-side challenges, deal environment and FY23 revenue, margin guidance and deal pipeline and deal closure momentum.

An assessment by KR Choksey Shares and Securities showed that Infosys net sales is likely to grow 25.30 per cent YoY in Q4FY22, while net profit and EBIT may increase by 16.30 per cent and 18.80 per cent YoY, respectively. The brokerage is positive on Infosys with a target price of Rs 2,094.

On the other hand, it added that margins are likely to contract by 43 basis points QoQ at 23.2 per cent, impacted by retention cost and lower utilisation. It also foresees a de-growth of 128 basis points on a YoY basis in operating profit margin.

HDFC Securities, which prefers Infosys in the tier-1 IT space, said the net profit of Infosys may increase 24.80 per cent YoY and 3 per cent on QoQ basis. On the other hand, it sees a 15.40 per cent YoY and 0.80 per cent QoQ rise in net profit in Q4FY22.