Five Key Highlights to Look for in Infosys’ Q4 Results.

As India’s technology giants gear up to unveil their fourth-quarter earnings, all eyes are on Infosys, the country’s second-largest software exporter, to gauge the pulse of the IT sector. With Tata Consultancy Services (TCS) setting a high bar with its impressive performance, investors and analysts eagerly await Infosys’ financial report, expected to be released on Thursday, April 18.

Here are five crucial factors to watch out for in Infosys’ Q4 results:

1. FY25 Guidance:
Investors will keenly observe the guidance that Infosys provides for the financial year 2025, as it sets the trajectory for the company’s performance in the upcoming fiscal year. Analysts anticipate Infosys to offer a conservative guidance range of 3-5% growth for FY25, considering the challenges faced in FY24. The margin projections for FY25 are expected to be in the 20-22% range, similar to the previous fiscal year.

2. Revenue and EBIT Margin:
Infosys is anticipated to report a marginal revenue growth of 0.3% quarter-on-quarter, despite facing delays in decision-making and increased furloughs. However, analysts predict a decline of 0.5% in constant currency (CC) revenue, attributed to weakened discretionary spends and reduced contribution from large deals. Meanwhile, the EBIT margins are expected to remain flattish for the March quarter, with margin headwinds from wage hikes being offset by one-off impacts from incidents such as the McCamish system Cyber incident.

3. Impact of Recent Events:
The market will be closely monitoring the impact of recent events, such as the McCamish system Cyber incident, on Infosys’ financials. Any updates or disclosures regarding these incidents and their repercussions on the company’s operations and profitability will be scrutinized by investors.

4. Client Wins and Deal Pipeline:
Analysts will be interested in understanding Infosys’ client wins and the robustness of its deal pipeline. Any commentary on the quality and quantity of deals, particularly in key markets and sectors, will provide insights into the company’s growth prospects in the near term.

5. Outlook on Digital Transformation:
Given the accelerated pace of digital transformation across industries, Infosys’ strategy and outlook in this space will be of paramount importance. Investors will be looking for updates on the company’s investments, partnerships, and capabilities in emerging technologies such as cloud, AI, and cybersecurity, which are driving the next phase of growth in the IT sector.

As Infosys unveils its Q4 results, the financial performance and strategic outlook outlined by the company will play a significant role in shaping investor sentiment and market expectations for the IT sector as a whole.

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