Infosys Q2 Results Preview: Revenue, Profit Likely To Improve, Guidance May Be Raised

The IT services major's consolidated net profit may rise 7% sequentially to Rs 6,815 crore in the quarter ended September.

Infosys Ltd is set to announce its earnings for the second quarter of the current financial year on Thursday

 (Source: Vivek Amare/NDTV Profit)

Infosys Ltd., which is set to announce its earnings for the second quarter of the current financial year on Thursday, is expected to see a growth in revenue, profits and margin. 

The IT services major's consolidated net profit may rise 7% sequentially to Rs 6,815 crore in the quarter ended September, according to a consensus of analysts' estimates tracked by Bloomberg.

Infosys Q2 FY25 Earnings Estimates (Consolidated, QoQ)

  • Revenue may rise 3.5% to Rs 40,707 crore.

  • Profit may rise 7% to Rs 6,815 crore.

  • EBIT margin may expand 30 basis points to 21.4%.

  • EBIT may rise 5.2% to Rs 8,726 crore.

Also Read: Nifty, Sensex Record Two–Day Losing Streak On Global Sell-Off; Infosys, M&M Drag: Market Wrap

Morgan Stanley expects Infosys to lead revenue growth by reporting organic constant currency sequential revenue growth of 2.8%. Bank of America expects this kind of revenue growth, including inorganic growth.

Large deal ramp-up and hiring in the second quarter should be margin headwinds. However, subcontractor optimisation and the positive impact of value-based selling should be able to negate the headwinds, according to JM Financial.

Motilal Oswal sees the company's operating margin inch down 80 basis points due to reversal of one-offs, large deal investments and decline in utilisation.

In terms of guidance, BofA, Morgan Stanley and Motilal Oswal expect Infosys to upgrade its full-year guidance by 50 basis points, while Ambit Capital expects it to maintain it. 

Infosys has guided for revenue growth of 3–4% for the fiscal. The company raised its revenue forecast, citing significant large deals during the April–June period.

On demand commentary amid a cautious environment, ICICI Securities underscores that cost efficiency focus and deal consolidation will continue. Traction in financial services is expected to continue from the first quarter; higher traction in hi-tech and recovery in communication is also expected, it adds. 

The company secured 34 large deals in the first quarter, its highest ever, with a total contract value of $4.1 billion, 57.6% of which were net new. Ahead of Q2 results, ICICI Securities notes that deal wins have been flat QoQ, slightly on the lower side. 

Also Read: Infosys, Zooplus Collaborate To Drive E-Commerce, Open GCC In Hyderabad

Watch LIVE TV , Get Stock Market Updates, Top Business , IPO and Latest News on NDTV Profit.
GET REGULAR UPDATES