Infosys Q1 results: Infosys Ltd., chaired by Salil Parekh, is scheduled to release its June quarter financial results at about 3:45 PM today. A press conference and a 60-minute conference call are scheduled for later in the day at 4:30 and 6 p.m., respectively, by the second-largest domestic exporter of IT software. The IT major is expected to report a YoY increase in net profit for the June quarter of up to 10% despite modest single-digit revenue growth. Infosys Q1 results today.
In constant currency (CC) terms, Infosys may announce revenue increase of 2-2.5% sequentially, and in dollar terms, 2-2.2 percent. Profit margins are unchanged year over year but rising sequentially as Infosys experienced a 1% impact on margin in Q4 as a result of renegotiating and rescoping with a BFSI client. The estimated order wins are $5 billion. Although the management commentary has improved, analysts still think the IT company may stick to its revenue and profitability projections for FY25.
According to Nuvama Institutional Equities, Infosys’s earnings increased 10.2% year over year to Rs 6,551 crore, with a 2.6% YoY increase in sales to 38,918 crore. Due to operating leverage and an extraordinary item in Q4, the EBIT margin is expected to be 20.8%, up 70 basis points from the March quarter. We believe Infosys will stick to its revenue growth projection of 1-3 percent CC YoY and 20–22% margins for FY25,” the statement read.
ICICI Securities plans to increase revenue by 2% in both US dollars and Canadian dollars. It anticipates a little traction in the BFSI (deals announced in Q1 were twice as large as those reported in Q4FY24), liberty deal ramp up, and hi-tech. For FY25, it projects 3.5% YoY dollar growth, with in-semi accounting for 100% of inorganic sales.
“Our deal pipeline is full, and the deals we closed last quarter are moving forward as planned. In comparison to Q4FY24, the quantity of significant deals has also doubled. We anticipate having an order book of about $5 billion. Infosys finalized the acquisition of In-Semi (assuming a quarterly run rate of 4.5 million in Q1). The in-tech purchase is anticipated to finalize in H1FY25,” it stated, projecting a 5.7% increase in Q1 earnings to Rs 6,283 crore. Sales are expected to increase by 0.8% to Rs 38,840 crore.
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A slight headwind from cross-currency was anticipated by Antique Stock Broking in their 2% CC sales growth estimate for Infosys. As to the statement, the growth in manufacturing should continue to be moderate sequentially, but the telecom and BFSI sectors should lead the growth.
The company is expected to uphold its FY25 revenue growth target of 1-3 percent in constant currency terms and its margin growth target of 20-22 percent, according to the statement.
