Infosys Q4 results announcement soon; revenues to margins, here is what to expect

AFter TCS, India’s second-largest IT firm, Infosys, is set to declare its Q4 results.

After the largest IT services company in India, Tata Consultancy Services (TCS) last week, now it is the turn of the next tech biggie, Infosys, to reveal its 4th quarterly numbers and that will happen this week on April 18. Notably, TCS started the ball rolling with some positive numbers. Infosys is now expected to report some flattish numbers amid weakness in discretionary spending. Expectations are that revenue may drop sequentially, EBIT margins are likely to stay flat.

Having said that, Infosys’ large deal total contract value (TCV) is now at nearly $13.2 bn, which is up 70% YoY – across three quarters.

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Infosys net profit is likely to be announced at ₹6,142 crore for the quarter in question vis a vis ₹6,106 crore in the December quarter. The numbers being an average estimate of seven brokerages, LiveMint reported. That is growth of 0.58%.

On a quarter-on-quarter (QoQ) basis, and away from the Indian currency, Infosys revenue in USD terms may drop 0.38% to $4,645 million from $4,663 million. This is likely on account of lower pass-through sales and even seasonal softness.

Revenue in rupee terms is estimated to drop 0.59% to ₹38,590 crore from ₹38,821 crore sequentially.

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Motilal Oswal Financial Services, in its commentary, said, “The deal pipeline remains healthy, while closures are somewhat challenging due to slower decision-making processes and furloughs. Nevertheless, the conversion rate remains on track.”

Infosys’ Earnings before Interest and Taxes (EBIT) is likely to fall 0.69% to ₹7,906 crore from ₹7,961 crore in Q3. EBIT margins may come in at a stable 20.5% QoQ.

Infosys guidance (constant currency – CC) in USD revenue growth may be revealed in the range of 2.5% – 5.5%. For FY25, guidance may be of 20% – 22%.

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EBIT margins are likely to remain flat QoQ as there will be one month impact of salary hikes, says Nomura.

Notably, Infosys share price did not offer any returns over the year. Shares dropped over 8% year-to-date (YTD).

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