Infosys Q3 Results Preview: Margin Seen Firm Even As Growth Remains Seasonally Soft
As the Indian stock market gears up for another earnings season, all eyes are on Infosys Q3 results, scheduled to be announced on January 14. The Bengaluru-based software developer is expected to report muted sequential growth in the December quarter, with margins seen holding firm even as seasonality and furloughs weigh on revenue momentum.
According to Bloomberg estimates, revenue and operating profit are expected to rise about 2% quarter-on-quarter, while net profit is seen little changed. The EBIT margin is expected to inch up to 21.14% from 21.02% in the previous quarter.
Seasonality And Furloughs Weigh On Revenue Momentum
The IT sector, in general, has been facing challenges due to seasonality and furloughs, which have impacted revenue growth. However, Infosys stock price has been resilient, thanks to its strong fundamentals and consistent performance.
Investors will be closely watching the company’s revenue growth, operating profit, and EBIT margin. Any positive surprises on these fronts could lead to a stock market analysis upgrade, while any disappointments could lead to a downgrade.
What To Expect From Infosys Q3 Results
Here are some key things to expect from Infosys Q3 results:
- Revenue growth: The company is expected to report a 2% sequential growth in revenue, which is slightly lower than the previous quarter.
- Operating profit: The operating profit is expected to rise about 2% quarter-on-quarter, driven by cost savings and operational efficiencies.
- EBIT margin: The EBIT margin is expected to inch up to 21.14% from 21.02% in the previous quarter, driven by cost savings and operational efficiencies.
- Net profit: The net profit is seen little changed, due to higher tax expenses and exceptional items.
Indian Investor Sentiment And Market Outlook
The Indian stock market has been volatile in recent times, with the Nifty levels and Sensex news dominating investor sentiment. The Indian stock market news has been driven by global cues, economic data, and corporate earnings.
Investors will be closely watching the Q3 earnings season, which is expected to be a mixed bag. While some companies are expected to report strong growth, others may disappoint due to various challenges.
Conclusion
In conclusion, the Infosys Q3 results are expected to be a mixed bag, with revenue growth and operating profit expected to rise, while net profit is seen little changed. The EBIT margin is expected to inch up, driven by cost savings and operational efficiencies.
Investors will be closely watching the company’s performance, and any positive surprises could lead to a stock market analysis upgrade. The Indian stock market news will continue to be driven by global cues, economic data, and corporate earnings, and investors should remain cautious and informed to make the most of the opportunities and challenges in the market.
