Q1FY24 Preview: Infosys: Revenue seen at Rs. 378,351 million, PAT at Rs. 63,425 million

18 Jul 2023 , 10:37 AM

Result date: 20^th July, 2023

Recommendation: Buy

Target price: Rs 1,500

Analysts at IIFL Capital Services are forecasting 0.9% cc sequential revenue growth for Infosys, as full quarter impact of project cancellation from last quarter is offset by ramp-up of recently won deals. Deal momentum should remain healthy, given the mega deal announcements during the quarter. 

Analysts at IIFL Capital Services expect EBIT margins to expand by 30 basis points sequentially, on easing supply side, productivity benefits and lack of wage hikes. Infosys should maintain FY24 guidance of 4-7% cc YoY revenue growth and 20-22% EBIT margin. 

The company’s Profit After Tax (PAT) could grow 3.5% on a sequential basis.

Important management insights to watch out for:

• Commentary around what’s required to achieve the guidance’s upper end
• Deal wins and pipeline
• Demand trends across key verticals
• Potential impact on margins from mega deals

	June 2023 estimates	QoQ change	YoY change
Revenue (US$ mn)	4,601	1.0%	3.5%
Revenue (Rs. mn)	378,351	1.1%	9.8%
EBIT (Rs. mn)	80,474	2.2%	16.4%
EBIT margin	21.3%	20 bps	120 bps
Profit After Tax (Rs. mn)	63,425	3.5%	18.3%
EPS (Rs.)	15.3	3.5%	19.8%

Source: IIFL Research