 "Infosys hits 52-week high ahead of Q1 results; check what street expects")
Infosys shares rise ahead of Q1 results: Shares of Infosys, the second biggest domestic information technology (IT) company soared up to 1.90 per cent, hitting their 52-week high at Rs 1,758.60 per share on the BSE in Thursday's intraday deals. This comes ahead of the IT-major’s quarter one earnings for the financial year 2024-25 (Q1FY25) which are scheduled to be released today, July 18, 2024.
Infosys is expected to lead the tier 1 Indian IT universe with the strongest growth, led by ramp-ups of multiple mega-deals, and a low base effectively providing one per cent kicker to June 2024 quarter growth, analysts said.
According to brokerages, Infosys will likely register a revenue increase of 2-3 per cent year-on-year (YoY) between Rs 38,800 crore to Rs 39,138 crore. Similarly, sequentially revenues can move up by 2-4 per cent. The company registered revenues of Rs 37,923 crore in Q4FY24 and Rs 37,933 crore in Q1FY24.
Further, the IT major may report a net profit in the range of Rs 6,200 crore to Rs 6,551 crore for the June quarter, against Rs 5,945 crore in Q1FY24. This means an increase of 4-10 per cent YoY for Q1FY25.
On a quarterly basis, profits could jump by 3-9 per cent. The company reported profit after tax (PAT) of Rs 5,998 crore in the March quarter of FY24.
Further, the street will watch out for updates on panning out of Liberty deal, any tweak on FY25 revenue growth guidance, update on inSemi acquisition and enterprise discretionary spending.
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The company has a total market capitalisation of Rs 7.29 trillion, according to BSE. The company’s shares are trading at a price to earnings multiple of 26.30 times with an earning per share of Rs 65.61.
At 01:33 PM, shares of Infosys were trading 1.89 per cent higher at Rs 1758.50 per share. In comparison, the BSE Sensex was trading 0.55 per cent higher at 81,162 levels.