Q4FY24 Preview: Infosys: Revenues seen at ₹387,416 Million, PAT at ₹63,453 Million

16 Apr 2024 , 11:28 AM

Result date: April 18, 2024

Recommendation: Buy

Target price: ₹1,700

Analysts at IIFL Capital Services expect Infosys to report 0.2% cc sequential decline in revenue, as reversal of furloughs is likely to be offset by continued weakness in discretionary spend. They expect deal momentum to remain healthy in the quarter, driven by larger deals. The company’s EBIT margins should expand by 30 basis points sequentially, as benefits of Project Maximum are realized.

Infosys could guide for FY25 revenue growth of 4-7% cc YoY and EBIT margin of 20-22%.

Profit After Tax or PAT could grow 3.9% on a sequential basis.

Important management insights to watch out for:

• Ramp-up timelines for previously won large deals
• Deal wins and pipeline
• FY25 revenue and margin guidance
• Margins puts and takes
• Potential share buyback announcement

	March 2024 estimates	QoQ change	YoY change
Revenue (US$ mn)	4,668	0.1%	2.5%
Revenue (₹ mn)	387,416	(0.2)%	3.5%
EBIT (₹ mn)	80,490	1.1%	2.2%
EBIT margin	20.8%	30 bps	(30) bps
Profit After Tax (₹ mn)	63,453	3.9%	3.5%
EPS (₹)	15.3	3.9%	3.7%

Source: IIFL Research