Q3FY23 Preview: Infosys : Revenues seen at Rs 378,303 million; PAT at Rs 64, 623 million

11 Jan 2023 , 11:36 AM

Result date: 12th January, 2023

Recommendation: BUY

Target Price: Rs 1800

Analysts at IIFL Capital Services forecast quarter-on-quarter (Q-o-Q) growth in revenue of 1.1% in the December quarter, in constant currency terms, for Infosys. Net profit is forecasted to increase Q-o-Q by 7.3% and Y-o-Y by 11.2%  The December quarter is seasonally a weak one for the sector. Deal momentum for the company is likely to remain healthy. 

Margins are forecasted to increase by 40 basis points, Q-o-Q, in the December quarter. Easing supply side pressures and depreciation in Rupee against the US dollar are expected to have a positive impact on margins. The company is expected to maintain its revenue and margin guidance for FY 23.

Important management insights to watch out for:

• Deal wins and pipeline
• Demand trends across key verticals
• Clients’ technology budgets for FY 23
• Potential impact on margins from easing supply side

Source: IIFL Research

	December quarter estimate	Q-o-Q	Y-o-Y
Revenue ($ mn)	4601	1%	8.2%
Revenue (Rs mn)	378,303	3.5%	18.7%
Ebit (Rs mn)	82,675	5%	10.5%
Ebit margin	21.9%	0.3%	-1.6%
Net income (Rs mn)	64,623	7.3%	11.2%
EPS (rs)	15.4	7.3%	11.2%