Infosys Q4 Results Preview: Weak discretionary spending to weigh on sales, FY25 guidance seen conservative
Infosys is likely to have gone through another tough quarter in terms of earnings growth, as lower sales and weak discretionary spending weighed on the overall performance in the three months ended March.
For the quarter ended March, the company’s consolidated revenue is seen dropping 0.4% sequentially, while growing 3.2% year-on-year (YoY) to Rs 38,650 crore, according to the average of estimates given by 10 brokerage firms.
Consolidated net profit is likely to be flat sequentially, and decline 0.5% YoY to Rs 6,103 crore. Operating margin is seen improving marginally sequentially from 20.5%, due to cross-currency tailwinds.
Infosys will release its fourth quarter and annual earnings on April 18.
After fairly conservative guidance for FY24, most analysts expect the revenue growth guidance for FY25 to be slightly better but remain in single digits.
“We expect FY25 revenue growth guidance to be in the range of 2-5%. We also expect Infosys to raise the EBIT margin guidance band to 20.5-22.5% from 20-22% (in FY24),” said Kotak Institutional Equities.
Meanwhile, Nirmal Bang Institutional Equities expects the Bengaluru-headquartered IT major to dole out constant currency revenue growth guidance of 4-7% for FY25, but the margin to be similar to the FY24 level of 20-22%.
For FY24, Infosys had slashed its growth guidance consecutively for three quarters due to the uncertain global environment.
Post the December quarter earnings, the country’s second-largest software services provider had guided for revenue growth of
