Infosys Q3 Results Preview: PAT seen declining by 9.5% YoY to 5,960 crore, says Elara
Infosys is expected to report a 9.5% year-on-year (YoY) decline in its December quarter net profit at Rs 5,960.10 crore, according to estimates by brokerage Elara Capital. On a sequential basis, a 4.1% contraction in the company's profit after tax (PAT) is seen.
This is a sharp decline from the 13.7% YoY growth reported by the company in Q3FY23 PAT at Rs 6,586 crore.
Meanwhile, in the previous quarter of the current financial year, the company's net profit stood at Rs 6,212 crore.
Infosys will announce its October-December quarter earnings on January 11, Thursday.
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The brokerage also anticipates a 1% constant currency (CC) revenue dip on account of project ramp downs and cancellations, high and senior-level attrition, seasonal furloughs and budget tightening in key geographies.
The company witnessed a setback in the form of a recent termination of a $1.5 billion AI deal with an unnamed global company, which Elara said, added to the company's growth headwinds in the near term. Demand may be broad-based and tepid, except for manufacturing and energy verticals, the brokerage note said further.
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The earnings before interest and tax (EBIT) which is a measure of the company's profitability is estimated at Rs 7,809.90 crore, which will likely be a climbdown by 5.2% YoY and 5.6% QoQ, the note said.
Meanwhile, the EBIT margin is likely to be reported at 20.2%, which is 130 bps lower YoY and 100 bps lower QoQ.
The earnings per share (EPS) is seen falling by 8.2% YoY to Rs 14 and 4.1%, sequentially.
For Elara,
