The results season is set to gather momentum with Infosys declaring its results on Thursday.
The Bengaluru-based IT services firm is expected to report flat revenue growth on a sequential basis.
The Street will be keenly watching its revenue guidance for the current fiscal.
Rival TCS announced its results last week — reporting a 9 per cent increase in net profits, which was above the expectations of analysts.
The TCS management said the current fiscal would be a better one compared with 2023-24, though it is difficult to project when the industry will see a turnaround.
The IT services sector has been hit by elevated interest rates by central banks which have affected discretionary spending with clients either cancelling or renegotiating contracts.
Analysts at Axis Securities expect Infosys to report a net profit of Rs 6,218 crore, a 1.5 increase over Rs 6,129 crore in the corresponding period of the previous year. Profit is expected to rise 1.8 per cent on a sequential basis.
The brokerage has projected revenues of Rs 38,945 crore, which is a 0.3 per cent increase over Rs 38,821 crore in the preceding three months. Infosys reported revenues of Rs 37,441 crore in the year-ago period.
Operating margins are expected to rise marginally by 30 basis points over the October-December 2023 period to 20.8 per cent.
The brokerage feels the company will guide for a revenue growth of 4.5-6 per cent for 2024-25.
HDFC Securities expects the company to forecast a 3-5 per cent revenue growth in this fiscal. Earlier this year, Infosys had guided for revenue growth of 1.5-2 per cent for 2023-24.
“We expect order book to be in line with average quarterly run-rate of $2.5-3.5 billion,” ICICI Securities said in a note.
The Infosys numbers will come at a time the markets have been hit by the Israel-Iran conflict.
The tensions have led to investors taking money off riskier assets such as equities over fears of higher oil prices and inflation.
This will not only affect global economic growth but also force central banks to keep interest rates at high levels for a longer period.
