Infosys Q2 preview: The Bengaluru-based Infosys is anticipated to announce a 10–12% year-over-year (YoY) increase in net profit for the September quarter on sales growth of 20% or more. It is anticipated that the IT major’s margin will increase by 60 to 75 basis points sequentially. The board meeting over the share repurchase would be watched closely. The majority of analysts anticipate Infosys management to stick to its 14–16% constant currency (CC) sales projection for FY23.
According to Axis Securities, Infosys would record an increase in profit after tax (PAT) of 10.8% YoY to Rs 6,008 crore from Rs 5,421 crore in the same quarter last year. Sales for the Bengaluru-based company are predicted to increase by 23.4% YoY to Rs 36,520 crore from Rs 29,600 crore in the same quarter last year.
Emkay Global estimates Rs 6,010.80 crore in earnings for Infosys. The sales figure for Infosys is Rs 36,527 billion. According to the brokerage, the IT major’s Ebitda Margin may increase 75 basis points QoQ to 23.6% from 22.8% in the June quarter.
Axis Securities predicted that margins would increase due to more offshoring and a favourable currency mix, and that the Ebitda margin would increase sequentially by 63 basis points to 23.4% from 22.8%.
“We anticipate Infosys will post revenue growth of 5.9% QoQ, and we think management will stick to the company’s revenue growth estimate of 14–16% for FY23E. (in CC terms). Additionally, a favourable currency mix and solid volume growth are expected to help the company’s margins expand by 63 bps QoQ “said Axis Securities.
Also Read: India Again Detracts from Voting at the UNGA on the Resolution Condemning Russia. Watch Video
Share repurchase
A proposal for a buyback of equity shares was discussed during a board meeting, which the company had previously informed stock exchanges about on October 10. Infosys is anticipated to announce a cash repurchase of between Rs 8,000 and Rs 10,000 crore, according to YES Securities.
The company said that this buyback would be a better use of the extra cash sitting on the books because the prospect for revenue growth has slowed as customers have grown cautious.
In the short future, it ought to restrict Infosys stock’s potential decline. It is anticipated that the buyback price will be significantly higher than the current market price. The effective use of cash reserves looks to be the best way to increase shareholder return in the current economic climate, according to YES Securities.
Keep watching our YouTube Channel ‘DNP INDIA’. Also, please subscribe and follow us on FACEBOOK, INSTAGRAM, and TWITTER
