Infosys Q2 preview: PAT to likely climb 5.5% QoQ, margin may decline 20bps

Infosys Q2 preview: The country's leading software services firm Infosys is set to release its Septemeber quarter results today. Zee Business research estimates consolidated PAT at the company to notch higher by 5.5 per cent sequentially to Rs 6,720 crore.

Revenue at the company is seen to jump 4 per cent on a quarter-on-quarter basis to Rs 40,885 crore as against Rs 39,315 crore. The ramp-up in large deals may aid an increse in revenue at the IT services major.

Furthermore, revenue in dollar terms may increase 3.5 per cent to Rs 488 crore versus Rs 471.4 crore reported in the June quarter. 

In constant currency (CC) terms, the revenue may register 3 per cent growth during the review period.

EBIT or earnings before interest and taxes at the IT services company as per Zee Business research estimates is seen to likely clock 2.9 per cent growth to Rs 8,530 crore. The same stood at Rs 8,288 crore in the same quarter last year.

Moreover, amid capex involved in large deals, the company's margins are likely to slip by 0.2 per cent or 20 bps to 20.9 per cent during the September quarter. Margin in the previous quarter was reported at 21.1 per cent.

Guidance outlook

For FY25, the Bengaluru-headquartered company may provide the CC revenue growth guidance of 4-5 per cent, while it may keep the EBIT margin guidance at 20-22 per cent.

Key monitorable

The shareholders and other stakeholders will watch out for key metrics including Vertical outlook, Deal TCVs and pipeline, margin levers, attrition and pricing among other key announcements.

Infosys share price performance

Ahead of its results despite subdued market mood, Infosys shares traded with over 1 per cent gains at Rs 1,945.95.