Infosys Q3 results preview: PAT declined 9.5% year-on-year to $596 billion, Elara said.
This is a sharp decline compared to the 13.7% YoY growth (Rs 6,586 crore) the company reported in PAT for Q3 2023. Meanwhile, the company’s net profit stood at Rs 6,212 crore in the last quarter of this fiscal.
Infosys is scheduled to report its October-December quarter results on Thursday, January 11.
Also Read: TCS Q3 Results Preview: PAT growth declined to 5.2% year-on-year due to more vacations, Elara says.
The brokerage also expects constant currency (CC) revenue to decline 1% due to project curtailments and cancellations, senior and senior staff reductions, seasonal furloughs and budget tightening in key regions.
The company recently saw a setback in the form of the closing of a $1.5 billion AI deal with an unnamed global company, which added to the company’s near-term growth headwinds, Elara said. Excluding manufacturing and energy sectors, demand may be broad and negligible, the brokerage added.
Also Read: Wipro Q3 Preview: PAT to record Rs 2,680 crore, down 12% year-on-year due to lower revenue, Nuvama said. Earnings before interest and tax (EBIT), a measure of the company’s profitability, is estimated at Rs 7,809.90 crore. It is expected to decrease by 5.2% compared to the previous year and by 5.6% compared to the previous quarter. Meanwhile, EBIT margin is expected to be reported at 20.2%, down 130 bps from the year-ago quarter and down 100 bps from the previous quarter.
Earnings per share (EPS) appear to have declined 8.2% year-on-year to ₹14, and 4.1% sequentially.
For Elara, the key indicator to monitor is commentary on the improving demand outlook. Investors should also keep a close eye on updates regarding closed genAI transactions and volume improvements.
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