Q2FY24 Preview Infosys: Revenues seen at Rs. 385,644 million, PAT at Rs. 63,750 million

10 Oct 2023 , 10:36 AM

Result date: October 12, 2023

Recommendation: Buy

Target price: Rs 1,530     

Analysts at IIFL Capital Services are forecasting 1.3% cc QoQ revenue growth for Infosys, as volumes remain subdued and discretionary spend is yet to pick up. Deal momentum has further accelerated, given the mega deal announcements during the quarter. 

They expect margins to expand 20 basis points sequentially, as wage hikes have been delayed, potentially to Q3. Infosys should maintain FY24 guidance of 1.0-3.5% cc YoY revenue growth and 20-22% EBIT margin.

The company is expected to post 7.2% sequential growth in  Profit After Tax  (PAT).

Important management insights to watch out for:

• Any changes to FY24 revenue and margin guidance
• Ramp up timelines for the recently announced large deals
• Deal wins and pipeline
• Competitive intensity
• Margin impact from mega deals
• Capital allocation

	September 2023 estimates	QoQ change	YoY change
Revenue (US$ mn)	4,663	1.0%	2.4%
Revenue (Rs. mn)	385,644	1.7%	5.5%
EBIT (Rs. mn)	81,041	2.7%	2.9%
EBIT margin	21.0%	20 bps	(50) bps
Profit After Tax (Rs. mn)	63,750	7.2%	5.9%
EPS (Rs.)	15.4	7.2%	7.4%

Source: IIFL Research