IT major Infosys’ share price tanked 1.77% in early trade on Thursday to Rs 1,402.95 per share ahead of its Q4FY23 earnings report. The firm’s share price gained 1.63% in trade on Wednesday, closing at Rs 1,429 per equity share. The company is projected to report moderate growth figures for the quarter concluded in March, both in terms of constant currency (CC) and USD. Experts anticipated that the IT major will be impacted by the usual seasonal slowdown and uncertain macroeconomic conditions.
The March quarter results of Infosys will be unveiled at 3.45 pm, followed by a press conference at 4:30 pm and an earnings call lasting 60 minutes at 6 pm. Along with announcing its quarterly and annual results for FY23, the board of Infosys will also announce the final dividend for the year.
“We expect muted 0.1% revenue growth in c/c, driven by both cloud/digital programs and cost take-out agenda of clients. March is a seasonally weak quarter for the company. We do not expect material incremental revenue contribution from the Daimler deal. We expect a 25 bps sequential decline in EBIT margin with headwinds from visa costs (40 bps) partially offset by operational efficiencies and lower pass- through expense. Deal TCV and pipeline will take centerstage. Large deals will be in focus,” said Kotak Institutional Equities in a report.
“We expect the management to revise the company’s revenue growth guidance for FY22E upwards and expect it to deliver revenue growth of 2.4%. Moreover, its margins are likely to improve by 461bps QoQ, aided by a favourable currency mix and strong volume growth,” said Axis Securities.