Infosys is a big newsmaker on the Street today and one of the reasons why the markets are so euphoric.
The company announced its Q3FY24 earnings and though disappointing (Q3 is seasonally low as its holiday season across US and Europe, its main markets), the markets have given it a big thumbs up as the numbers were above expectations and many fund houses put out reports stating that the company can only look up from this juncture and the worst patch might be over.
Various analysts expect the company to sustain its strong deal wins which we saw over the last couple of quarters to continue.
The company, for Q3FY24, reported a 7% (YoY) decline in consolidated net profit at Rs.6106 crore while revenue for the quarter came in at Rs.38,821 crore.
EBIT margin slipped 70bps t0 20.5%, impacted by furloughs and salary hikes.
Large deal wins were strong at $3.2 billion, with 71% of this as net new. In Q2, it had set a new record with deal win at $7.7 billion.
The company narrowed its revenue growth guidance for the full year to 1.5-2% for the full year and retained its operating margin guidance of 20-22%.
The stock opened today 4% higher at Rs.1556 and rose further to Rs.1606.55, up 7.5% and not too far from its 52-week high of Rs.1620 hit in Feb’23.