As the earnings season for the fourth quarter of FY25 ramps up, all eyes are on Infosys as it prepares to unveil its financial results. After major players like Tata Consultancy Services (TCS) and Wipro have shared their outcomes, investors are keen to see how Infosys will perform amid challenging market conditions. Analysts predict a modest growth in revenue but caution that profits may take a hit in this quarter, highlighting the struggles often faced during the March period.
Projected Earnings and Market Sentiment
According to Kotak Institutional Equities, expectations for Infosys’s Q4 outcomes are mixed. They forecast a 2.3% decline in sequential revenue, attributed to decreased income from third-party sales and typical seasonal demand dips. They also predict a 60 basis points drop in EBIT margin, primarily due to recent wage hikes for junior staff, though currency depreciation may help balance some of these losses.
Key factors that investors should keep an eye on include:
- Impact of Global Economic Conditions: Ongoing tariff disputes and an overall downturn in the economy could affect spending.
- Program Cancellations: Any updates on project cancellations will be critical.
- Deal Pipeline Strength: The performance of large deals, which have been underwhelming in the last three quarters, will be closely monitored.
- Client Pricing Pressures: The demand for AI-driven solutions is influencing pricing strategies.
- Margin Strategies for FY2026: Insights into how the company plans to manage margins will be essential.
- Guidance Clarity: Understanding whether the company’s future guidance is conservative or optimistic will be crucial for investors.
Previous Quarter Insights
In January, Infosys reported its Q3 results, with a profit of Rs 6,806 crore, marking an 11.46% year-over-year growth. The company also revealed revenues of Rs 41,764 crore, reflecting a 7.58% increase compared to Rs 38,821 crore from the same quarter last year.
Upcoming Release and Expectations
Stay tuned for the latest updates! Infosys is set to announce its Q4FY25 results today, April 17, 2025, at approximately 3:45 PM IST. Following the results announcement, the leadership team will host a press conference at 4:15 PM IST. Additionally, a conference call is scheduled for 5:30 PM IST, where senior management will elaborate on the company’s performance and engage with participant inquiries.
With the backdrop of a fluctuating market, Infosys’s quarterly results are highly anticipated. For continuous updates on the latest earnings, dividend announcements, and management insights, keep following us.
