Infosys Q1 results at 3:45 pm. Here's what you should know

Infosys Ltd, the second-largest software exporter in India, will report its June quarter results at around 3:45 pm today. The leadership team of Infosys will meet for a press conference at 4:30 pm today, where the participating executives will address questions from the media during this interaction, which will be streamed live on the Investor Relations section of Infosys website. An archive for the same would be available after 6:30 pm.

Besides, the Bengaluru-based firm said it will conduct a 60-minute conference call at 6:00 pm, where the senior management will discuss the IT major's performance and answer questions from participants. Ahead of its quarterly results, Infosys shares were trading at Rs 1,450 on BSE, down 1.65 per cent. The top Nifty performer of Nifty in the last one month, Infosys shares fell as analysts do see tepid sequential revenue growth, a sequential fall in margin on wage hikes and chances of lowering of FY24 revenue guidance by the IT giant.

On a YoY basis, profit for Infosys is seen rising in double digits and sales in single digits. Margin is seen contracting sequentially on wage hikes.

Phillip Capital expects CC revenue growth of 0.8 per cent sequentially on a weaker base of March quarter. Demand uncertainty in BFSI, Telecom, Hitech and Retail will lead to weak start for FY24, it warned.

"Margins are expected to remain flat as efforts from pyramid optimisation, utilisation, and subcontracting will be offset by likely increase in travel & facility costs. We have not assumed wage hikes for Infosys in Q1. We expect Infosys to retain its guidance,' it said.

Phillip Capital sees profit jumping 18.6 per cent YoY to Rs 6,357.70 crore from Rs 5,360 crore YoY and revenue rising 10.5 per cent YoY to Rs 38,095 crore from Rs 34,470 crore. Dollar revenue is seen rising 1 per cent sequentially and 3.5 per cent YoY. Ebit margin is seen at 21 per cent, flat QoQ but up 100 bps YoY.

The growth would be muted for the quarter due to ramp down by select clients, said YES Securities. This brokerage sees profit for Infosys rising 14 per cent year-on-year (YoY) to Rs 6,110 crore on a 8.9 per cent rise in sales at Rs 37,523 crore. Another domestic brokerage Axis Securities pegs Infosys profit at Rs 5,998 crore and sales at Rs 37,742 crore. It sees Ebitda margin at 20.6 per cent, down 42 basis points sequentially (696 basis points YoY)

Antique Stock Broking sees a 0.5 per cent QoQ CC revenue growth, even as it accounted for 10 bps tailwind from cross currency. Operating margin should largely be flat at 21 per cent as an increase in visa and facilities cost should be offset by an increase in utilisation, it said.

"We believe large deal wins to remain decent given the recent deal wins and the increasing momentum of cost take deals. But we expect the management to narrow its growth guidance by lowering the upper band by 100 bps to 4–6 per cent as the company’s ask rate to achieve the upper-end post a weak Q1 would be nearly 4.5 per cent CQGR. Margin guidance to remain intact at 20–22 per cent for FY24.

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