Infosys Q3 preview

Sales seen rising 19% YoY; 2023 outlook pivot for D-Street Infosys NSE 1.56 % is likely to report strong double-digit year-on-year (YoY) growth in both the topline and bottomline for the quarter ended December due to strong deal pipeline and execution. Consolidated revenue is seen rising nearly 19% on year, and 4% sequentially to Rs 37,890 crore, according to the average of estimates given by 10 brokerages. The net profit is seen rising 11% on year and 7.2% sequentially to Rs 6,455.40 .. The Bengaluru-headquartered software major will release its quarterly numbers after market hours on Thursday. Furloughs and cross-currency headwinds are likely to restrain the constant currency sales growth for Infosys at about 1.5-1.8% sequentially, said analysts. Earlier this week, peer Tata Consultancy Services NSE 1.21 % reported a 19% growth in the topline and a 11% rise in the bottomline, but the net profit missed analysts .. While the near-term outlook for the IT sector remains murky in view of the economic slowdown in the US and Europe, most analysts expect Infosys to retain its sales growth and margin guidance for the current financial year. Infosys had guided for a 15-16% growth in sales in constant currency terms for FY23, and a 21-22% operating margin, calculated as earnings before interest and tax (EBIT). For the second quarter in a row, the software major will .. Peer TCS NSE 1.21 % had reported strong double-digit growth across these sectors in the last quarter. From a geography perspective, the Street will watch for growth in North America, the UK and Europe. TCS saw a double-digit growth in both North America and the UK, while the growth was in single digits for Europe, and the company had highlighted heightened uncertainty in this market when compared to North America and UK.