Q1 results today: Three things to look at in Infosys results for Q1FY24
Q1 results today: After three Indian IT major — Tata Consultancy Services (TCS0, HCL Technologies and Wipro, fourth IT giant Infosys is going to declares its Q1 results 2023 on Thursday. As per the company release, Infosys results for Q1FY24 may get announced by 3:45 PM followed by press conference and earnings call at 4:30 PM and 6:00 PM respectively. As per Dalal Street estimates, the Indian IT major is expected to report soft margins and muted revenue growth, but it is expected to report better revenue growth than TCS, HCL Tech and Wipro. However, stock market experts are of the opinion that one should judge Infosys Q1FY24 results by looking at the company’s performance on three fronts — margins, attrition and order book inflows.
On how to judge Infosys results for Q1FY24, Anuj Gupta, Vice President — Research at IIFL Securities said, “These days any Indian IT company’s results are judged on three basic points — margins, attrition and order book inflow.” The IIFL Securities expert maintained that attrition rate would be crucial a lowering of attrition of employees is expected to result in higher invoicing and order book inflow and these two would result in improvement of margins. Hence, out of these three, attrition rate of employees would be most important, said Anuj Gupta.
Highlighting the importance of European and the US business inflows after the Russia-Ukraine war, Vaibhav Kaushik, Research Analyst at GCL Broking said, “After the outbreak of Russia-Ukraine war, most of the IT companies have logged depreciation in order inflows from the US and Europe and Infosys is not an exception to it. As Infosys receives majority of its business inflows from US and Europe, it would be important to scrutinize company’s order book inflows from US and Europe and its performance on both sequential and year-on-year (YoY) basis.”
However, Infosys shares are under the sell off heat since Indian stock market’s opening bell today. Infosys share price today opened downside and went on to hit intraday low of ₹1,440.70 apiece on NSE, logging near 2 per cent dip from its Wednesday’s close price of ₹1474.95 apiece on NSE.
Advising ‘buy on dips’ strategy ahead of Infosys results, Sumeet Bagadia, Executive Director at Choice Broking said, “Those who have Infosys shares in their portfolio, they are advised to maintain stop loss at ₹1,350 levels. For a fresh investor, one an maintain buy on dips strategy maintaining stop loss at ₹1,350 apiece levels. There can be strong bounce back in the scrip if the revenue growth as expected by the market manages to beat TCS, Wipro and HCL Tech.”
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
Know your inner investor
Do you have the nerves of steel or do you get insomniac over your investments? Let’s define your investment approach.
Download The Mint News App to get Daily Market Updates.
Updated: 20 Jul 2023, 12:39 PM IST
