In a noteworthy turn of events, Infosys witnessed a drop of nearly 2% in its share price during early trading on Thursday, just ahead of the much-anticipated announcement of its Q4 results. The stock slipped to ₹1,386.20 on the BSE, reflecting investor concerns about the company’s performance. As the second-largest IT services firm in India, Infosys is set to reveal its financial figures for the fourth quarter of FY25 today, April 17, along with a comprehensive report for the entire fiscal year 2024-2025.

Anticipated Q4 Earnings: A Closer Look

Market analysts predict that Infosys will report lackluster earnings for the quarter ending in March 2025. Several factors are contributing to this outlook, including a sequential decline in revenue linked to seasonal fluctuations in demand and ongoing margin pressures. The current macroeconomic climate, marked by a US-induced global tariff war, is further complicating the situation, leading to expectations of subdued guidance from the IT giant.

• Revenue Expectations:

  • Projected revenue decline: 0.4% sequentially, totaling ₹41,617 crore.
  • In USD terms, a forecasted drop of 1.6% to $4,861 million.
  • Constant currency growth may fall by 310 basis points (bps) to -1.4%.
• Net Profit Forecast:
  • Anticipated decrease of 4.7% QoQ to ₹6,488 crore.
  • Estimated EBIT drop of 5% QoQ to ₹8,472 crore.
  • Projected EBIT margin contraction of 100 bps sequentially to 20.4%.

Investor Insights: Share Price Outlook

According to Sumeet Bagadia, Executive Director at Choice Broking, the outlook for Infosys’ share price remains cautious. He notes that the stock is currently facing resistance at ₹1,425 and could potentially slide to ₹1,320. His recommendation centers on a sell-on-rise strategy, advising investors to target a price range of ₹1,330 to ₹1,320 while maintaining a stop loss at ₹1,425.

Recent Performance Metrics

• One-Month Decline: 13%
• Year-to-Date Drop: Over 26%
• Six-Month Performance: Down 30%
• One-Year Stability: Shares have remained relatively flat, yet over the last five years, Infosys has recorded impressive gains, delivering a remarkable 120% return.

As of 9:30 AM, Infosys shares were trading at ₹1,390.65, reflecting a decrease of 1.58%. The upcoming Q4 results will be crucial in determining if the company can navigate the current economic challenges and regain investor confidence.

In summary, as Infosys prepares to unveil its financial performance, stakeholders are keenly awaiting insights that could influence future trading strategies and market positioning amidst a backdrop of economic uncertainty.