Infosys Q3 FY22 Preview: Revenue likely to go up by 4 per cent, guidance may improve
Infosys Q3 FY 22 Preveiw: Software majors Infosys, TCS and Wipro will open the earnings season on Wednesday, January 12, 2022
Infosys Q3 FY 22 Preveiw: Software majors Infosys, TCS and Wipro will open the earnings season on Wednesday, January 12, 2022. As per analysts, the Bengaluru headquartered IT and consulting software, Infosys, Ltd, is likely to record up to 4 per cent growth in constant currency (CC) terms.
Placing a buy rating on Infosys, the research firm Prabhudas Lilladher has pegged a 14% target price of Rs 2,063 apiece from the current levels. " The IT bellwether is likely to post 3.9 per cent revenue growth in CC on sequential basis. Growth will be led by Daimler mega-deal and continued broad-based strength in demand," said Prabhudas Lilladher. It also anticipated Infosys to upgrade narrow down revenue guidance band to 17-17.5% YoY CC from 16.5-17.5% earlier and expected EBIT margin guidance of 22-24% to remain unchanged.
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Edelweiss Research too expects the software giant to post a revenue growth of 3% QoQ in constant currency. It is of the view that Infosys will be a key beneficiary of core transformation; accelerated cloud and digital adoption; deal ramp-up; and iv) market share gain due to persistent market loss by key players such as Capgemini and Cognizant.
“We are of the view that the company would increase the guidance from 16.5–17.5%. We expect Infosys to post margin improvement of 60bps QoQ due to supply side challenges cooling off, price increase and operating leverage,” it said.
Earlier, a report from CRISIL ha said that revenue from export-linked sectors, such as IT services, is likely to rise 18-20 per cent year-on-year, aided by the rising share of digital transformation as well as a possible revival of deferred projects.
The same report said that the operating margin of India Inc is likely to drop in the December quarter with a 100-120 bps year-on-year decline, as 27/40 sectors are set to see crimped margins despite higher revenue.
Meanwhile, ahead of the Q3FY 22 results, shares of Infosys on Tuesday closed flat at Rs 1856.05, a marginal gain of 0.27%.
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