Infosys Q4 Earnings: Infosys, which is set to announce its financial performance on Wednesday, is expected to report a solid performance, despite a high base. Revenue growth will be a function of broad-based traction in key verticals, though the seasonality factor might dampen the show a bit. Continued adoption of digital and cloud platforms augur well for the company and will continue to drive deal wins. On the other hand, the EBIT margins could shrink amid high visa costs, continued supply-side pressures and lower utilization rates. For FY23, the company could guide for 12-14 per cent growth in constant currency revenues and EBIT margin of 22-24 per cent.
After Tata Consultancy Services Q4 earnings, the attention is now being diverted to Infosys, investors will gauge FY23 revenue and margin guidance, outlook on pricing trends, and management commentary. Infosys is seen to report a stable quarter. Infosys informed NSE on April 1, 2022, that it will release results for the fourth quarter and year ended March 31, 2022, at 4 p.m. Indian Standard Time (IST) on Wednesday, April 13, 2022. The board of directors of the company will publish audited standalone and audited consolidated financial results for the fiscal year ending March 31, 2022, at the meeting. In addition, a final dividend for the fiscal year ending March 31, 2022, would be recommended.
What to Expect from Infosys Q4FY22 Earnings?
Emkay Global sees Infosys’s profit growing 18.4 per cent to Rs 6,010 crore while sales rising 23.9 per cent YoY to Rs 32,610 crore.
“We expect 1.9 per cent sequential dollar revenue growth in Q4FY22 after factoring in 30 bps cross-currency headwinds. The EBIT margin is expected to remain flat in Q4FY22,” it said.
Infosys guiding for 12-15 per cent constant currency (CC) YoY revenue growth and 22-24 per cent EBIT margin. Investors would be looking forward to updates on client conversations – impact from high energy prices, inflation and potential economic slowdown, the brokerage said.
YES Securities sees the company’s profit rising 20.3 per cent YoY to Rs 6,105 crore and sales 26.2 per cent to Rs 33,219 crore. Growth, it said, will be broad-based across industry verticals with almost flat sequential margins.
Management commentary on 2022 IT budget, steps it is taking to manage supply-side challenges and available levers to defend margins and demand environment in BFSI, manufacturing, retail, and communications segments, would be the key things to watch out for, analysts said.
Stock Outlook:
Infosys is one of the top picks of JM Financial analysts in this sector. They have given a Buy recommendation with a target price of Rs 2,030 apiece.
Angle One Ltd. said that Infosys has been consistently posting a good set of numbers and has become the bell-weather for the sector over the past few quarters. “We expect Infosys to continue reporting better than industry average topline growth along with stable margins. Infosys continued to remain our top pick amongst the Tire-I IT companies. We currently have a BUY rating on the stock with a price target of Rs. 2,205,” they added.
On Monday, Infosys shares corrected ahead of their Q4 earnings. The shares settled at Rs 1766.65 apiece on BSE down by Rs 48.45 or 2.67 per cent. The shares did open at an intraday high of Rs 1818.95 apiece before pulling back and taking a downturn to even clock an intraday low of Rs 1763 apiece. So far in a year, Infosys shares have jumped by nearly 24 per cent taking into consideration today’s closing price. The shares stood near Rs 1,425 apiece on April 12 last year. The shares of Infosys have touched a new 52-week high of Rs 1,953.70 apiece on BSE earlier this year.
