Infosys Q1 preview: A healthy YoY growth in revenue, PAT likely; deal pipeline, recovery to be in focus

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IT major Infosys will release its June quarter scorecard on July 14 wherein, along with the numbers, investors are expected to keep a close watch on the Bengaluru-based company's deal pipeline and recovery in underperforming verticals.

Brokerages believe the company may announce a healthy year-on-year (YoY) growth in revenue and profit after tax (PAT).

Brokerage firm Motilal Oswal Financial Services expects Infosys to post a strong revenue growth on the ramp-up of large deals and higher billing days.

It expects a nearly 17 percent YoY rise in the revenue, while PAT may grow 30 percent. The brokerage added that supply-side issues will have no impact on the company's performance.

Motilal expects the company's FY22 revenue growth guidance to be revised upwards, while demand commentary may be closely watched by investors.

Kotak Institutional Equities expects a sequential revenue growth rate of 4.5 percent in constant currency (CC), driven by higher billing days and seasonal strength, the ramp-up of large deals, and higher spending across all major verticals.

Kotak's estimates show the revenue of the company may grow 17.7 percent YoY, while adjusted net profit may see a growth of 25.9 percent YoY.

It expects Infosys to raise FY2022E revenue growth guidance to 13-15 percent in CC from 12-14 percent. EBIT margin of 22-24 percent may stay unchanged, Kotak said.

"Magnitude of the pass-through element in Daimler deal will influence FY2022E revenue growth and EBIT margin and will be a key area of focus," the brokerage said.

Emkay Global expects a 17 percent YoY rise in revenue and a 28.3 percent rise in PAT. EBITDA may see a jump of 26 percent YoY, while EBITDA margin may rise 198 bps.

Shares of Infosys have risen 23 percent on NSE in 2021 against a 13 percent rise in the benchmark Nifty50.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.