Infosys Reports Tepid Q4 Results with Marginal Revenue Drop

Indian IT giant, Infosys, has disclosed its Q4 results, encapsulating a slightly subdued performance as revenue margins remained flat amidst weakening customer spending priorities. The firm’s fourth-quarter figures show a marginal dip in revenue compared to the previous quarter, according to predictions by a range of analysts including Equirus Securities, JM Financial, Nomura, Motilal Oswal, and Nuvama Institutional Equities.

Reporting within the core banking sector demonstrated a higher transactional volume, especially referred to pivotal digital projects. Insights from the banking vertical could reveal strategic planning approaches for the upcoming year, anticipating potential customer spend in the financial IT sector of CY24.

Average figures project Infosys to maintain a stable EBIT margin, remaining firm at 20.5%, deflecting overrun expenses incurred earlier to stabilize its financial standing. Projections for Infosys’ fiscal year ending FY25 have been outlined by Equirus Securities, with an estimated guidance range of 2.5%-5.5% in USD revenue growth, and an EBIT margin forecast of 20%-22%.

The anticipated outcome for Infosys indicates a growth trajectory in revenue reported for the fourth quarter, suggesting the impact of recent market conditions on the tech-oriented industry segments. Notably, the preceding quarter saw Infosys’ competitor, Tata Consultancy Services, unveiling their financials, setting a benchmark for sector investors considering the business landscape.