Infosys Results

Infosys Q3 preview: The operating margin could improve by 10-40 basis points (bps) to up to 21.9 per cent sequentially aided by a weakened rupee, lower attrition and higher optimisation

The IT major has increased the lower end of the revenue guidance keeping upper end constant i.e. revenue guidance changed from 14-16 per cent to 15-16 per cent in constant currency terms.

Bloomberg had estimated revenue to be Rs 36,564 crore and net profit at Rs 5,902 crore

However, they have not specified the quantum of the buyback the company could announce. Infosys is scheduled to announce its Q2-FY23 numbers on October 12

Its net profit for Q1FY23 was below expectations at Rs 5,360 crore, up 3.2 per cent year-on-year (YoY) but was down 5.7 per cent sequentially

The Bengaluru-based IT major saw its revenue rise 23 per cent to Rs 32,276 crore in the recently concluded quarter, as against Rs 26,311 crore in the previous corresponding period

Among sectors, the Nifty Metal index zoomed 3.5 per cent on the NSE today while the Nifty Realty index slumped 0.8 per cent

In US dollar terms the company's revenue growth was 7 per cent in constant currency basis

According to Jefferies, Infosys's growth will be impacted by seasonal softness, although deal ramp-ups should help drive 3.7 per cent quarter-on-quarter (QoQ) CC revenue growth

The BSE m-cap stood at Rs 272.8 trillion by close

HCL Tech (up over 5 per cent), L&T, Tech M, Hindalco, Wipro, UPL, HDFC Bank, and ITC were the top gainers

The market capitalisation of Infosys declined Rs 37,579.03 crore to Rs 5,76,275.68 crore.

Despite the miss on sequential revenue growth, analysts remain bullish on Infosys as they believe underlying metrics should continue to aid the company's growth leadership in FY22

Motilal Oswal Securities expects Infosys to be a key beneficiary of a recovery in IT spends in FY22E

The company board also recommended a final dividend of Rs 15 per share for FY21

In the past one month, Infosys has outperformed the market by surging 16 per cent, as compared to a 7 per cent rise in the S&P BSE Sensex

Large deals, digital growth drives outperformance

While double-digit growth in FY22 is a given, near term margins could come under pressure

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The IT major delivered its highest Q3 sequential growth of 5.3 per cent in 8 years in constant currency