IT-giant Infosys is set to announce its financial performance for the quarter ended June 30, 2022 (Q1FY23). Unlike other quarters, this time Infosys has scheduled to present its quarterly results on Sunday. It is expected that Infosys may post single-digit growth in PAT on a year-on-year basis, while the bottom line may dive sequentially. EBIT margins seem to be affected due to higher costs. However, a depreciating rupee is also expected to provide some support to margins and revenues. Before Q1, Infosys shares were under pressure.
on BSE, Infosys shares closed below 1506.30 26.55 or 1.73% on Friday. Its market cap is approx. 6,33,793.91 crores.
The company will announce the results first quarter Around 5:45 pm Indian Standard Time (IST) on Sunday, July 24, 2022, of FY23.
In Q4FY22, Infosys posted a consolidated net profit of 5,686 cores grew 12% year over year but down 2.1% quarter over quarter. Consolidated revenue was up 22.7% yoy and 1.3% qoq to . climbed 32,276 crore in the quarter. Meanwhile, Q4 sequential growth in constant currency was 1.2%, with an operating margin of 21.5%. The TCV of big deal wins in Q4 was $2.3 billion.
For FY22, the company’s PAT grew by 14.3% year-on-year 22,110 crore, and revenue grew 21.1% year-on-year 121,641 crores. Infosys delivered revenue of $16.3 billion, the highest annual growth in the last decade of 19.7% in constant currency, with a strong operating margin of 23.0%. Growth was broad-based, supported by continued momentum in big deal wins with TCVs of $9.5 billion. In rupee terms, EPS grew 15.2 per cent. FCF crossed $3 billion for the year.
For FY23, Infosys has set a revenue growth target of 13%-15% at constant currency. While the operating margin is expected to grow at 21%-23%.
What to expect in Infosys Q1FY23?
Sameer Pardikar, Research Analyst, ICICI Direct said, “Infosys expects to post 4.5% QoQ growth in CC led by momentum from financial services, retail, communications, energy and manufacturing. Cross currency headwind of 100 bps to 3.5% QoQ. Will lead to dollar growth over the period
However, like its peers, Infosys’ operating margins are likely to remain under pressure. Pardikar said, “EBIT margin is expected to contract 75 bps QoQ on account of increase in employee cost, retention cost, while reversal of contractual provisions made in the fourth quarter and margins to some extent for the quarter from depreciation of Rs. Will help.”
On the bottom side, the analyst said, “Pat expects a decline in QoQ of ~0.8%.”
Among the key things to watch in the quarter would be — if there is any change in revenue growth and EBIT margin guidance for FY13.
Also, the net growth of Infosys employees in the quarter will also be closely monitored. So far, in Q1FY23, Wipro has made one of the highest hiring with a net growth of 15,446 in three months. As of June 30, 2022, Wipro has a workforce of 258,574, as against 243,128 as of March 31, 2022.
Other peers like HCL Tech had a total workforce of 210,966 in Q1, an increase of only 2,089 employees from 208,877 in the March 2022 quarter. Meanwhile, TCS headcount stood at 606,331 – a net addition of 14,136 during the quarter compared to the March 2022 period.
In Q4FY22, Infosys made a net addition of 21,948 employees – taking the total to 3,14,015 employees as against 2,92,067 headcount as of December 2021.
ICICI Direct analyst expects revenue to stay on 34,198.1 crore in Q1FY23 with 22.6% yoy and 6% qoq. While PAT is seen 5,638.5 crore is up 8.5% annually but is to fall 0.8% sequentially.
catch all corporate news And updates on Live Mint. download mint news app to receive daily market update & Live business News,