Infosys: The IT firm revised downward its FY24 constant currency (CC) revenue guidance to 1-3.5 per cent compared with 4-7 per cent suggested earlier. It maintained its Ebit margin guidance at 20-22 per cent. 
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Infosys: The IT firm revised downward its FY24 constant currency (CC) revenue guidance to 1-3.5 per cent compared with 4-7 per cent suggested earlier. It maintained its Ebit margin guidance at 20-22 per cent. Infosys on Thursday said its board of directors will meet on October 11 and October 12 to approve and take on record the audited consolidated financial results of the company and its subsidiaries, as per Indian Accounting Standards (INDAS) for the quarter and half year ending September 30. In a filing to BSE, Infosys said it would also approve and take on record the audited financial statements of the company and its subsidiaries.
To recall, Infosys had disappointed Street post its June quarter results, as it cut its FY24 revenue guidance, even as it maintained its Ebit margin projection for the year. Infosys shares are up 4 per cent since the disappointing yearly guidance on July 20.
“The financial results and proposal for interim dividend, if any, will be presented to the Board of Directors on October 12, 2023 for their approval,” Infosys said. The IT firm said it will hold investor/ analyst calls, the same day, to discuss the financial results for the quarter and business outlook. Details of the calls will be published on the company’s website in due course, Infosys said.
“The company will close the trading window for the earnings release of the quarter ending September 30, 2023 in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, as amended. Accordingly, the trading window will be closed from September 16, 2023 and will re-open on October 16, 2023,” it said.
The IT firm revised downward its FY24 constant currency (CC) revenue guidance to 1-3.5 per cent compared with 4-7 per cent suggested earlier. It maintained its Ebit margin guidance at 20-22 per cent. Brokerages had anticipated some downward revision in revenue guidance, but the revised growth target missed their forecasts by a wide margin.
The IT major has recently bagged a couple of big deals of late. In August, Infosys and Liberty Global entered into an initial 5-year agreement, with an option to extend to 8 years and beyond. Infosys will provide services to Liberty Global estimated at 1.5 billion euros. Besides, Infosys entered a strategic multi-year collaboration with STARK Group, Europe’s largest retailer and distributor of building materials, to power its digital transformation journey leveraging the recently launched Infosys Topaz. Besides, Infosys announced a strategic collaboration with Danske Bank to power the bank's digital transformation, which further enhanced Infosys' localisation strategy in the Nordics.
"The management has guided low single digit growth in FY24 mainly because of macroeconomic uncertainties. The higher onsite expenses also put operating margins to be under pressure. We recommend a SELL rating on the stock and assign a 20 times P/E multiple to its FY25E earnings of Rs 63.70 per share to arrive at a target price of Rs 1,300/share," Axis Securities said on September 21.
As per Trendlyne, the stock has an average target price of Rs 1,449, suggesting a 4 per cent potential downside.
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