Infosys Q4FY25 results preview: Bengaluru-headquartered Infosys is slated to report its Q4 earnings on Thursday after market hours. Zee Business research sees the IT services major to post a weak set of earnings for the March quarter. Consolidated profit at the company is expected to decline over 2 per cent sequentially to Rs 6,628 crore versus Rs 6,770 crore in the December quarter of FY25.
However, the topline at the IT services and consultancy is expected to rise 1.2 per cent quarter-on-quarter (QoQ) to Rs 41,850 crore as against Rs 41,370 crore. Revenue in dollar term, however, is expected to decline by a tad 1.2 per cent to Rs 485 crore in the review quarter, while the same stood at Rs 491 crore in the preceding quarter.
The revenue in constant currency terms is also seen declining by 1.2 per cent.
Primarily, seasonal weakness as well as furloughs are set to weigh on the company’s revenue during the review quarter.
Infosys’ operational performance estimates
Earnings before interest and taxes (EBIT) for the quarter is expected to decline by a marginal 0.4 per cent during the quarter to Rs 8,713 crore. The company’s EBIT during the previous quarter was at Rs 8,750 crore.
Margin, meanwhile, is also estimated to decline by 0.4 per cent or 40 basis points to 20.8 per cent in the reporting quarter as an increase in wage will impact negatively. Nonetheless, strength in the dollar will offer some respite.
Deal wins
The research team pointed that even as the deal pipeline remains robust, there could be issues when it comes to deal closures. This is as clients cut in discretionary spending will have a bearing on deal closures.
Key monitorable
Amid an ongoing trade tariff war, revenue guidance by the company will be looked for. In addition, the view in respect of recovery in discretionary spending in the the BFSI segment will be watched out for.
Infosys share price performance
Ahead of the results tomorrow, shares of Infosys traded with a cut of 1 per cent at Rs 1,413.6 per share.
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