Infosys will be in focus in the trading sessions in the coming week due to the announcement of third quarter financial results for the financial year FY23. On Sunday, the IT giant announced details of its Q3 results, which will be announced on January 12, 2023. Infosys is expected to see expansion in its EBIT margin during Q3FY23. FY23 guidance, large deal intake, and client conversations are some of the factors that will be keenly tracked in Q3FY23.
According to the regulatory filing, the company will announce the results for the third quarter ended December 31, 2022 on Thursday, January 12, 2023 at around 3.45 PM Indian Standard Time (IST) (5:15 AM ET; 2:15 AM ET). pst; 10:15am London time; 6:15 PM Singapore/Hong Kong time).
In addition, a general press conference will be held for the quarter. It added that the leadership team will be part of a general press conference on January 12, 2023 at 4:30 pm. Participating executives will address questions from the media during the interaction, which will be streamed live on the Investor Relations section of . Infosys Website.
Also, the Company will hold a single 60-minute conference call on January 12, 2023 at 6:00 PM IST, where senior management will discuss the Company’s performance and answer questions from the participants.
Infosys share on Friday last week declined 1.79% at 1,448.85 on the BSE. Infosys is India’s fourth largest company in terms of market share, whose valuation is over 6.09 lakh crores. is the second largest IT firm after TCS,
Peer TCS to announce its third quarter revenue On 9 January.
In its Q3FY23 preview report for the IT sector, Emkay Global on Infosys said, “We expect 0.8% QoQ USD revenue growth in Q3 after factoring in 20bps cross-currency headwinds. EBIT margin up ~20bps due to operational efficiencies , pyramid rationalization, sub-contracting cost optimization, and rupee depreciation.”
Key highlights to watch on Infosys Q3 results, according to the brokerage are:
– FY23 guidance that Emkay expects the company to maintain its 15-16% CC YoY revenue growth and 21-22% EBITM
– great deals
– Any delay/postponement/cancellation of projects due to macro uncertainties and high inflation
– Updates on client conversations – impact from higher energy prices, inflation, and potential economic downturn/recession
– Management Comment — CY23 IT Budget; demand environment across BFSI, manufacturing, retail and communications; pricing environment; Deals pipeline, nature of deals – cost takeout vs discretionary/transformative, speed of decision making, and speed of deal closure.
MK has a ‘Buy’ recommendation on Infosys stock with a target price of Rs. 1,700 each.
In Q2FY23, Infosys posted a consolidated net profit of Rs. 6,021 crore with a growth of 11% YoY, while revenue from operations came in at Rs. 36,538 crores up 23.43% year-on-year. In the quarter, the company delivered a strong Q2 performance with year-over-year growth of 18.8% and sequential growth of 4.0% in constant currency. In constant currency terms, year-over-year growth was in double digits across all business segments. Digital comprised 61.8% of total revenue and grew 31.2% in constant currency. Operating margin for the quarter increased 140 bps sequentially to 21.5%. Large deal TCV for the quarter was strong at $2.7 billion, the highest in the last 7 quarters. Furthermore, the company’s attrition rate stood at 27.1% in Q2FY23 as compared to 28.4% in Q1FY23.
Disclaimer: The views and recommendations given above are of individual analysts or broking companies and not of Mint. We advise investors to do due diligence with certified experts before making any investment decision.
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