India's second-largest IT company Infosys will release its fourth quarter and annual results on April 13, 2023, Thursday, the company said in an NSE filing
IT major Infosys is likely to report about 15% rise in year-on-year (YoY) net profit on a 20% rise in net sales for the March quarter on April 13, 2023. Ebit margin is expected to expand marginally. Deal wins are expected to be flat on a sequential basis
Analysts largely expect Infosys to guide for 5-8% revenue growth in constant currency (CC) terms and 21-23% Ebit margin for FY24. All eyes would be on large deals intake and update on client conversations
Infosys would be the first company to issue an FY24 guidance and would set the tone for the outlook in the current financial year. Analysts expect the company to guide for 6-8% revenue growth in CC terms for FY24, while margin guidance should be seen at 21-23%
In the December quarter, Infosys saw 20% growth in its consolidated revenue at Rs 38,318 crore, while net profit came in at Rs 6,586 crore during the same period
The attrition rate for Infosys dipped to 24.3% on a 12-month trailing basis in the December quarter. The total headcount stood at 346,845. "Attrition will likely moderate further as supply side pressures ease, which will aid in realising operational efficiencies," Kotak Institutional Equities said
Market and investors will keep an eye out for commentary around the impact of worsening macros and banking crisis in the USA and EU on the earnings growth going forward. This would give an idea of the demand environment for the BFSI vertical, one of the largest revenue contributors for Infosys
Amid cautious macro trends, quantum of pipe, nature of large deals, pace of decision making, and drivers of consolidation trend will be in focus. The fourth quarter is expected to see healthy TCV of wins powered by large deals
Most analysts expect the company to guide for 5-8% CC YoY revenue growth and 21-23% EBIT margins. While front-ended growth guidance will give a lot more comfort and even create scope for upgrades, back-ended growth guidance may not be viewed favourably
Shares of Infosys ended at Rs 1,406.15 on Wednesday, a day before the IT company is scheduled to announce its financial results for the March quarter (Q4FY23)