After TCS, HCL Tech and Wipro, another tech major Infosys will on Thursday, July 20, announce its financial results for the first quarter (Q1) of the current financial year 2023-24. The company is expected to post a 2 per cent growth quarter-on-quarter, which is much better than the sequential fall in net profits of TCS, HCL Tech and Wipro.
Infosys is likely to post a net profit of Rs 6,245 crore for the April-June 2023 quarter (Q1), as per an average of eight brokerage estimates. It is 16.5 per cent higher y-o-y and 1.9 per cent higher q-o-q.
In the March 2023 quarter, Infosys had posted a 7.8 per cent y-o-y jump in its net profit at Rs 6,128 crore for the fourth quarter ended March 2023. Its revenues during January-March 2023 had increased 16 per cent to Rs 37,441 crore, compared with Rs 32,276 crore a year ago.
In the first quarter of the preceding fiscal FY23, Infosys had posted a net profit of Rs 5,360 crore.
However, according to a note by foreign brokerage Jefferies, “We expect revenue to decline by 0.5 per cent QoQ (constant currency) due to cancellations, project ramp-downs, and slower decision cycles. We expect a 20bps QoQ contraction in EBIT margin due to revenue decline. Large deal wins to benefit from the $454 million Danske Bank deal and also possibly from the announced MoU with BP.”
Infosys is currently facing issues such as global tightening of IT budgets, project cancellations, delays in the decision-making process and reduction in small-scale and time-sensitive deals.
For the full financial year 2022-23, Infosys’ net profit saw a rise of 9 per cent to Rs 24,095 crore, compared with Rs 22,110 crore in the year ended March 31, 2022. Its revenue during the year jumped 20.7 per cent to Rs 1,46,767 crore, from Rs 1,21,641 crore a year ago.
Infosys’ IT services attrition saw a decline to 20.9 per cent during the March 2023 quarter, compared with 24.3 per cent in December 2022 quarter and 27.7 per cent in the March 2022 quarter.
The total number of Infosys employees stood at 3,43,234 as on March 31, 2023, lower by 3,611 than 3,46,845 as on December 31, 2022. However, it was higher than the 3,14,015 headcount as on March 31, 2022.
Kick-starting the India Inc’s Q1 FY24 earnings season, TCS last week reported a consolidated net profit of 16.8 per cent at Rs 11,074 crore for the June 2023 quarter. HCL Technologies Ltd. on Wednesday declared Rs. 3,534 crore net profit in Q1 for the financial year 2023-24 along with an interim dividend of Rs10/share.
Wipro reported a consolidated net profit of nearly 12 per cent year-on-year (YoY) rise in consolidated net profit for the quarter ended June to Rs 2,870 crore. Consolidated revenue increased 6 per cent to Rs 22,831 crore.
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