Infosys shares rise after company to announce Q1 results on July 18

Infosys shares rose over half per cent on exchanges on Tuesday, June 18, after the company informed it will release its Q1 results on July 18. At around 10:05 a.m., shares of Infosys was up 0.73 per cent or Rs 10.9 on BSE at Rs 1,499.45 apiece. The market capitalisation of the company stood at Rs 6,22,555.94 crore at around the same time.

Brokerage view: 

Jefferies maintained a 'buy' and gave a target of Rs 1,630 apiece. Global brokerage believes management expects discretionary IT spending to remain under pressure given macro and tech uncertainties. Further, as per analysts growth in FY25 should be front-ended, thereby reducing the disconnect between growth and deal wins. The brokerage also sees multiple opportunities in Gen-Al and is investing heavily to augment its capabilities. 

Similarly, CLSA maintained an 'outperform' rating on the stock and gave a target of Rs 1,553 apiece. CLSA believes the company is undergoing rough cyclical currents but has long-term industry positioning intact. 

Moreover, sales growth revival will be led by cloud, discretionary spend revival, and Gen Al. Also, substantial opportunity around Gen Al, where the company is prepared as compared to its peers. Additionally, multiple margin levers are at hand.

Infosys Q4 results 

Infosys, India’s second-largest software exporter by revenue, reported a 30 per cent year-on-year (Y-o-Y) increase in its net profit at Rs 7,969 crore for the fourth quarter of 2023-24 (FY24), above the consensus Bloomberg estimates of around Rs 6,166 crore.

Revenue for the quarter grew by 1.3 per cent Y-o-Y to approximately Rs 37,923 crore, falling short of the consensus Bloomberg estimate of around Rs 38,572 crore. Sequentially, revenue declined by 2.3 per cent as clients continued to remain cautious.   

Infosys share price: Past performance 

In a year, shares of Infosys have given returns of over 15 per cent against Nifty50's rise of 25 per cent.

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