Infosys Q3 results preview: Revenue likely to decline nearly 2% with 100 bps margin contraction in seasonally weak quarter

Infosys Q3 results preview, Infosys Q3 results 2024 expectations: Infosys, the country’s second largest IT company, is all set to report its financial results for the October-December period on January 11, Thursday. The fiscal third quarter is typically softer for the sector owing to wage hikes, furloughs in key markets and lower discretionary spends by clients. 

Analysts will closely track the Bengaluru-headquartered IT major’s business outlook, pricing, deal wins, attrition and management commentary. India Inc is entering the results season days after global IT services giant Accenture retained its full-year forecast for growth at 2-5 per cent and operating margin at 14.8-15 per cent. 

What to expect from Infosys 

According to Zee Business research, Infosys is estimated to report a consolidated net profit of Rs 6,220 crore for the quarter ended December, which translates into a sequential increase of 0.1 per cent.  

The analysts peg the IT firm’s revenue for the three-month period at Rs 38,525 crore, a decline of 1.2 per cent on a quarter-on-quarter basis. In dollar terms, revenue is estimated to drop 1.9 per cent sequentially to $4,627 million, and 1.6 per cent in constant currencyon account of seasonal weakness, according to the research.  

The IT giant’s margin—a key measure of profitability for a business— is expected to come in at 20.2 per cent for the quarter, 100 basis points lower in comparison to the previous three months, according to Zee Business research.  

The Bengaluru-based software exporter is likely to report a six per cent fall in quarterly earnings before interest and taxes (EBIT) to Rs 7,780 crore, according to Zee Business research.The IT company is likely to maintain its EBIT margin guidance for the year, at 20-22 per cent, say the analysts. 

Infosys Q2 results: Here's how the IT firm fared in July-September 

For the quarter ended September 2023, Infosys reported a 4.5 per cent sequential increase in consolidated net profit to Rs 6,212 crore that fell short of Street expectations. The IT major lowered the upper end of its full-year revenue growth forecast by 100 basis points (bps).  

Read more about Infosys Q2 earnings 

Infosys shares: Past performance  

Infosys shares finished the December quarter 7.5 per cent stronger, underperforming gains of 10.7 per cent and 11.7 per cent in the Nifty50 and Nifty IT indices, respectively. In 2023, the IT stock grew 2.3 per cent while the headline and IT gauges rose 20 per cent and 24.1 per cent, respectively. 

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