Infosys Q3 results: What you need to know before the third quarter earnings

Net profit for the quarter is projected to grow by 9-10% YoY, amounting to ₹6,680 to ₹6,770 crore, and by 3-4% QoQ. Despite the modest revenue increase, Infosys is likely to see improved profitability driven by factors such as rupee depreciation against the U.S. dollar, consistent new deal wins, and enhanced operational efficiencies. These tailwinds are expected to contribute to higher EBIT margins for the quarter.

Investors will be watching closely for updates on revenue growth guidance for FY25, which could be revised upward from the 3.75-4.5% range announced in the previous quarter. Additionally, attention will be on new deal wins, management's insights on discretionary spending across industries, and the overall demand outlook.

Ahead of the results, Infosys shares are trading 0.39% higher at ₹1,947 per share on Wednesday, January 15. So far in January, the stock has climbed over 3.6%. For 2024, Infosys shares have gained 21.8%, significantly outperforming the NIFTY50 index, which rose by 8.8% during the same period.

Technical View

The technical structure of Infosys remains range-bound for the past three trading sessions and it is consolidating between the range of ₹1,973 and ₹1,931. Meanwhile, the stock is currently trading above all its key exponential moving averages like 21,50 and 200, suggesting that the broader trend remains positive.

For the upcoming sessions, traders can monitor the range of ₹1,973 and ₹1,931. A break of this zone on a closing basis will provide directional clues.

Options build-up

On the flip side, the significant additions on both call and put options was seen at 1,940 strike. This indicates that the market participants are expecting a range-bound movement between 1,850 and 2,050. Unless Infosys breaks this range, the trend may remain range-bound. A break of this range will provide directional clues.

Before diving into strategy, let's review Infosys share price movements around its earnings announcements over the last six quarters.

Options strategy for Infosys

With the options market expecting a price movement of ±5% before 30 January expiry, traders can consider Long and Short Straddle strategies to capitalise on the expected volatility.

Disclaimer

Derivatives trading must be done only by traders who fully understand the risks associated with them and strictly apply risk mechanisms like stop-losses. The information is only for educational purposes. We do not recommend any particular stock, securities and strategies for trading. The stock names mentioned in this article are purely for showing how to do analysis. Take your own decision before investing.