Infosys Q4 result preview: Revenue to see marginal drop in March quarter
Upstox
2 min read • Updated: April 18, 2024, 11:15 AM
Summary
Infosys is expected to post a muted growth in net profit to ₹6,142 crore in the March quarter against ₹6,106 crore in the December quarter, according to experts.
Shares of IT services giant Infosys are in focus ahead of its earnings report for the quarter and the financial year ended on March 31, 2024. The company will announce its financial results for Q4FY24 on Thursday, April 18.
Shares of Infosys gained as much as 1.17% to hit a high of ₹1,430.25 apiece on the NSE in morning trade. The stock was trading flat at ₹1,422 apiece, up 0.53% at 11:00 am.
According to market experts, India’s second-largest IT company is expected to post a fall in revenue for the March quarter. An analysts' poll projected a 0.59% fall in revenue to ₹38,590 crore in the March quarter against ₹38,821 crore in the December quarter due to weak discretionary spending. This is in contrast to its bigger rival TCS reporting a 3.5% year-on-year growth in revenue for the March quarter last week.
Infosys is expected to post a muted growth in net profit to ₹6,142 crore in the March quarter against ₹6,106 crore in the December quarter, as per the poll estimates. TCS posted a better than expected 9% growth in Q4 net profit.
Infosys FY25 guidance to be key for investors
Investors will be keenly watching Infosys’ FY25 guidance and management commentary. The IT giant is expected to project a revenue growth of 2-6% for the next financial year. Analysts expect Infosys to project margins at 20-22% similar to FY24.
TCS has expressed optimism over FY 2024-25 and expects this fiscal to be better than FY24.
Management commentary and hiring trends
Investors will also keenly watch the management commentary for the March quarter and the new fiscal. The management’s views on spending outlook, impact of mega deals on margin and stressed verticals will be keenly watched.
Besides Infosys hiring numbers and attrition rate will also be under the investors’ lens. Rival TCS saw its headcount declining by 13,249 in 2023-24.
Infosys deal wins in Q4
As per experts Infosys’ deal wins could be in the range of $2-3 billion in the March quarter against $3.2 billion in the December quarter. Total contract value was $7.7 billion in the June quarter.
Investors’ focus will be on the conversion of revenues of large deals signed into revenues.