Improved cost optimization is expected to enhance Infosys’ margins, according to Axis Securities analysts, when the company releases its Q1 FY25 results on July 18.
Infosys Q1 FY25 Results Preview
Projections of Revenue and Profit
Infosys is predicted to report a 2.6% sequential growth in consolidated revenue, reaching Rs 38,900 crore as opposed to Rs 37,923 crore in the prior quarter, per study. This stock 24 news evelopment is probably due in part to the acceleration of big deals and the lack of sporadic problems pertaining to the BFSI sector.Revenue is expected to increase by 2.1% in US dollars on a quarter-over-quarter (QoQ) basis, from $456.4 million to $466.1 million. When expressed in terms of constant currency, Sequential revenue growth of 2.3% is anticipated.
It is anticipated that Infosys’ earnings before interest and taxes (EBIT) will increase by 4% sequentially to Rs 7,925 crore from Rs 7,621 crore in Q4FY24. Growth leverage, the lack of one-time effects, and operational effectiveness, according to InCred Equities, will propel margin improvements, somewhat offsetting the high transaction transformation costs. As a result of postponed pay revisions, margins are predicted to increase by 30 basis points (bps), from 20.1% in Q4FY24 to 20.4% in the most recent quarter.
Estimates of Net Profit, Infosys Q1 FY25 Results Preview
Even with a promising margin outlook, Infosys is predicted to post a sharply lower net profit. Analysts predict a sequential decline of 20.9%, resulting in a net profit of Rs 6,300 crore as opposed to Rs 7,969 crore in the prior quarter. The lack of income tax refunds and decreased other revenue are the reasons for this fall.
Infosys is expected to stick to its FY25 estimate of 1-3% constant currency earnings growth and 20-22% EBIT margins, according to InCred Equities.
Crucial Aspects to Watch
Investors and stakeholders will keep a close eye on the following:
- Deal pipeline and TCVs
- Rates of attrition
- Strategies for pricing
- FY25F projections
Prognosis for the increase of big transactions - Vertical analysis – Projected client budget
- Levers for pricing and margin
Performance of Stocks
Infosys’ shares closed at Rs 1,725.8 per share, up more than 1% from its closing 52-week high of Rs 1,737.50, ahead of its results. The stock has increased 21% in the last 12 months.
This thorough preview offers an in-depth examination of Infosys’ anticipated performance in Q1 FY25. providing insightful information to investors about the financial standing and prospects of the organization.
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