Infosys Q2FY23 Results Preview: Profit may grow in double-digit, margins likely to be stable – check expectations

Infosys Q2FY23 Result Preview: Information and Technology (IT) major Infosys Limited is expected to report healthy second-quarter consolidated earnings for the financial year 2022-23 on a quarter-on-quarter (QoQ) basis, as per Zee Business research. The company is scheduled to release its FY23 July-Sept result on Thursday, October 13, 2022.

According to Zee Business research, Infosys’ consolidated revenue in rupee terms may surge by 6.5 per cent to Rs 36,700 crore (estimate) as compared to Rs 34,470 crore in the previous quarter. While in dollar terms, it may grow by 3.4 per cent to $459.5 crore (estimate) versus $444.4 crore QoQ.

The second-largest IT firm, in terms of market capitalization, is likely to report double-digit growth in consolidated profit up by 10.4 per cent to Rs 5,920 crore (estimate) in Q2FY23 versus Rs 5,360 crore in Q1FY23.

On EBIT (Earnings Before Income Tax) front, the company may witness a consolidated growth of 7.8 per cent to Rs 7,450 crore (estimate) in Q2FY23 against Rs 6,914 crore in the last quarter of FY23, while the margins are likely to come stable at 20.3 per cent (estimate) versus 20.1 per cent QoQ.

In constant currency terms, the revenue is expected to grow by 4.7 per cent in the September-ended quarter of FY23, Zee Business research mentioned.

It expects the company to retain 14-16 per cent CC revenue growth and 21-23 per cent EBIT margin guidance, as well as a good deal conversion, is also expected.

Along with the results announcement tomorrow, Infosys is also scheduled to consider a share buyback scheme at a meeting on Thursday, October 13, the company said in a release on Monday.

Infosys could fix the buyback price at a premium of 18-21 per cent from the current market price, which could be between Rs 1740 and Rs 1800, as per Zee Business research analyst Arman Nahar.

Nahar said as per the calculation, Infosys could announce a buyback of Rs 8000-9000 crore and the company’s cash and equivalents stood at Rs 22,000 crore as of June-end of FY23. The buyback is most likely to be executed through a tender route.

The share price of Infosys on Wednesday closed flat with a positive bias at Rs 1430 levels on the exchanges as compared to a nearly 1 per cent rise in both Nifty and Sensex. The counter in the last one year has dipped over 16 per cent and almost 25 per cent year-to-date.