Key Points
Software major Infosys is likely to report a muted growth in revenue for the September quarter due to continued demand slowdown, with no meaningful contribution from the recently signed mega deals...
Analysts expect the company to retain the guidance as the deal pipeline will aid revenue growth...
It is realistic to assume that Infosys will achieve the mid-point of the revenue growth guidance band and marginally lower than mid-point for EBIT margin...
Expect investor focus on: (1) profitability dynamics of mega-deals, (2) commentary on ramp-up timelines of mega-deals to provide comfort on better revenue growth in the back half of the year, (3) margin levers especially noting that back-ended growth guidance is based on typically margin dilutive large and megadeals, (4) discretionary spending environment, especially in impacted verticals, (5) reasons for senior leaderships exits and replacements and (6) effective date for wage revision...
Expect Infosys to maintain its revenue (1-3.5%) and margin (20-22%) guidance for FY24...
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