Infosys Q4 earnings: Infosys, which will announce its financial performance on Wednesday, is expected to report solid performance despite a high base. Revenue growth will be a function of broad traction in key verticals, although the seasonal factor may dampen the show a bit. Continued adoption of digital and cloud platforms bodes well for the business and will continue to drive deal winning. On the other hand, EBIT margins could contract due to high visa costs, continued supply-side pressures and lower capacity utilization rates. For FY23, the company could lead to 12-14 percent growth in constant currency revenues and 22-24 percent EBIT margin.
Following Tata Consultancy Services’ fourth quarter earnings, focus now shifts to Infosys, investors will gauge earnings and margins for FY23, outlook on price trends and management commentary. Infosys reports a stable quarter. Infosys notified NSE on April 1, 2022 that it will publish its results for the fourth quarter and year ended March 31, 2022 on Wednesday, April 13, 2022 at 4:00 PM Indian Standard Time (IST). The company’s board of directors will publish at the meeting audited standalone and audited consolidated financial results for the fiscal year ended March 31, 2022. In addition, a final dividend for the fiscal year ending March 31, 2022 would be recommended.
What to expect from Infosys Q4FY22 earnings?
Emkay Global sees Infosys profit grow 18.4 percent to Rs 6,010 crore, while revenue increases 23.9 percent year-on-year to Rs 32,610 crore.
“We expect sequential revenue growth of 1.9 percent in Q4FY22, taking into account a 30 basis point foreign exchange headwind. EBIT margin is expected to remain flat in Q4FY22,” the company said.
Infosys targets 12-15 percent constant currency (CC) year-over-year revenue growth and 22-24 percent EBIT margin. Investors should look for updates on customer talks – the impact of high energy prices, inflation and possible economic slowdown, the brokerage said.
YES Securities is seeing the company’s profit increase 20.3 percent year-on-year to Rs 6,105 crore and sales increase 26.2 percent to Rs 33,219 crore. It said growth will be broad across all verticals with near-flat sequential margins.
Management commentary on the IT budget for 2022, the steps it is taking to manage the supply-side challenges and the levers available to defend margins and the demand environment in the BFSI, manufacturing, retail and communications segments, would be the top things to watch out for, analysts say.
Infosys is one of the top picks of JM Financial analysts in this industry. They have issued a buy recommendation with a target price of Rs 2,030 each.
Angle One Ltd. said Infosys has consistently released a good run of numbers and has become the clock weather for the industry in recent quarters. “We expect Infosys to continue to report better than industry average revenue growth along with stable margins. Infosys continued to be our top choice among the Tyre-I IT companies. We currently have a BUY recommendation for the stock with a price target of Rs. 2,205,” they added.
On Monday, Infosys stocks corrected ahead of their Q4 gains. The shares paid Rs 1766.65 each on BSE, down from Rs 48.45 or 2.67 per cent. The shares opened at an intraday high of Rs 1818.95 each before pulling back and tumbling to even clock an intraday low of Rs 1763 each. So far in a year, Infosys stock is up nearly 24 percent, taking into account today’s closing price. The shares stood near Rs 1,425 apiece on April 12 last year. Shares of Infosys hit a new 52-week high of Rs 1,953.70 each on BSE earlier this year.
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