Infosys Q1 Results 2024 Live Updates: Revenue Growth Likely To Rebound

Infosys, a leading IT company, is scheduled to announce its Q1 financial results today, July 18. Analysts predict a rebound in sequential revenue growth of 2-3 percent in constant currency (CC), driven by the ramp-up of significant deals secured during FY24. However, attention will be on the management’s comments regarding any adjustments to FY25 revenue growth guidance.

Analyst Opinions and Market Reactions

According to analysts, Infosys was likely to see a rebound in its sequential revenue growth to 2-3 per cent on constant currency (CC), on the back of a ramp-up in large deals won during FY24.

Latest Updates on Infosys Q1 Financial Performance

Nomura predicts that Infosys will experience a 3.0% quarter-on-quarter growth in constant currency (cc), fueled by the ramp-up of large contracts, the removal of the one-time 100 basis points (bp) impact from the BFSI client contract restructuring, and robust seasonal patterns. Infosys is anticipated to uphold its FY25F revenue growth forecast of 1-3% in constant currency.

Regarding EBIT margins, Nomura forecasts an 80 basis points quarter-on-quarter expansion, driven by the absence of the one-time 100 basis points impact from the BFSI client contract restructuring and the exclusion of visa costs for the quarter.

Infosys Q4 Results FY 23-24

In April 2024, Infosys reported a 30% year-on-year increase in net profit, reaching Rs 7,969 crore for the fourth quarter ended March 2024. However, its revenue for January-March 2024 grew only 1.3% year-on-year to Rs 37,923 crore, compared to Rs 37,441 crore in the same period the previous year.

Infosys’ net profit was Rs 6,128 crore in the corresponding quarter last year.

For the financial year ended March 31, 2024, Infosys had recommended a final dividend of Rs 20 per equity share and a special dividend of Rs 8 per equity share, as per a BSE filing on April 18.

Q1 Results of IT Companies

Last week, IT giants Tata Consultancy Services (TCS) and HCL Tech announced their earnings for the June 2024 quarter, both surpassing expectations. This led to a rise in their share prices.

TCS, India’s largest IT services company, reported a 9% year-on-year increase in consolidated net profit, reaching Rs 12,040 crore for the first quarter of FY 2024-25, ending on June 30. The company’s revenue from operations during April-June 2024 rose by 5.4% year-on-year to Rs 62,613 crore. Analysts had anticipated a profit of Rs 11,999 crore and revenue of Rs 62,190 crore.

HCL Technologies recorded a substantial 20.45% year-on-year increase in net profit, amounting to Rs 4,257 crore for the first quarter of FY 2024-25. Its revenue from operations during April-June 2024 grew by 6.69%, reaching Rs 28,057 crore, compared to Rs 26,296 crore in the same period last year.