Q4FY23 Preview: Infosys: Revenues seen at Rs 390,947 million, PAT at Rs 65,360 million

12 Apr 2023 , 06:13 AM

Result date: 13^th April, 2023

Recommendation: Buy

Target price: Rs 1,850

Analysts at IIFL Capital Services are forecasting 0.6% cc sequential revenue growth for Infosys, as macro uncertainty in key verticals could lead to delayed ramp-up of previously won deals. Deal momentum should remain healthy, as clients shift focus towards cost takeout deals. 

Analysts at IIFL Capital Services expect margins to expand 20 basis points sequentially, on easing supply side. The company’s productivity benefits could be partly offset by continued investments. Analysts at IIFL Capital Services expect Infosys to give FY24 guidance of 6-9% cc YoY revenue growth and 21-23% EBIT margin. 

The company’s Profit After Tax or PAT could inch up 0.7% on a sequential basis.

Important management insights to watch out for:

• FY24 guidance and what it bakes in
• Deal wins and pipeline
• Demand trends across key verticals amid macro uncertainty
• Potential impact on margins from easing supply side

	March 2023 estimates	QoQ change	YoY change
Revenue (US$ mn)	4,750	2.0%	11.0%
Revenue (Rs. mn)	390,947	2.0%	21.1%
EBIT (Rs. mn)	84,738	2.8%	21.8%
EBIT margin	21.7%	20 bps	10 bps
Profit After Tax (Rs. mn)	65,360	(0.8)%	14.9%
EPS (Rs.)	15.8	0.7%	16.8%

Source: IIFL Research