Q1FY23 Preview: Infosys: Revenues seen at Rs338,126 million, PAT at Rs57,844 million

23 Jul 2022 , 04:59 PM

Result date: 24^th July, 2022
Recommendation: Buy
Target price: Rs1,800

Infosys is likely to report a strong performance in the June 2022 quarter, despite a high base. The company’s constant currency revenues could grow 3.5% sequentially, driven by broad-based momentum across verticals and strong order book. Deal momentum should remain healthy, as clients continue on their digital and cloud journey.

EBIT margins could remain flat sequentially despite wage hikes for junior employees, given the absence of visa costs and one-off client related costs from the March 2022 quarter. Analysts at IIFL Capital Services expect Infosys to retain its guidance of 13-15% growth in constant currency revenue and 22-24% EBIT margin for FY23.

Important management insights to watch out for:

• Deal wins and pipeline
• Any changes to FY23 guidance
• Commentary related to supply-side challenges and attrition trends
• Impact of macro concerns on demand

 

	June 2022 estimates	QoQ change	YoY change
Revenue (US$ mn)	4,380	2.3%	15.8%
Revenue (Rs. mn)	338,126	4.8%	21.2%
EBIT (Rs. mn)	72,812	4.7%	10.3%
EBIT margin	21.5%	–	(210) bps
Profit After Tax (Rs. mn)	57,844	1.7%	11.6%
EPS (Rs.)	13.8	1.7%	13.0%

Source: IIFL Research