Q2 Results Live Updates: Infosys, Tata Motors, Adani Power in focus ahead of earnings today
Business News›Markets›Stocks›Live Blog›Q2 Results Live Updates: Infosys, Tata Motors, Adani Power, JSW Steel in focus ahead of earnings today
Infosys is projected to post an 11% year-on-year (YoY) increase in revenue and an 8% rise in net profit for the September quarter,
Q2 Results Today Live: Infosys is projected to post an 11% year-on-year (YoY) increase in revenue and an 8% rise in net profit for the September quarter, based on the average estimates of seven brokerages. However, analysts expect company to cut its full-year revenue growth guidance, citing subdued discretionary spending, AI-driven pricing pressures and delays in client decision-making.
Several companies are set to announce their September-quarter earnings, including Infosys, Adani Power, JSW Steel, Shriram Finance, Torrent Pharmaceuticals, Tata Motors, CG Power and Industrial Solutions, Bharat Petroleum Corporation, Jindal Steel, Dr Reddy’s Laboratories, SBI Funds Management, Oracle Financial Services Software, Coforge, Shree Cement, IndusInd Bank, Bank of India, SBI Cards and Payment Services, Godrej Properties, Sterlite Technologies, CRISIL, Atul and Supreme Petrochem, among others.
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Infosys’ revenue growth has consistently been underwhelming, but on a like-for-like basis, the company continues to perform in line with its larger peers, with no clear evidence of structural market share losses. The constructive outlook is supported by two key factors: a strong AI capacity build-out that positions Infosys to capture a greater share of enterprise AI-led transformation spending as budgets expand, and an attractive valuation that already factors in subdued near-term growth.
Its vertical mix is also expected to support growth, with management projecting EURS and Financial Services to lead the way through FY27. The appointment of an internal candidate as CEO designate further signals leadership continuity and stability. The BNP maintains an Outperform rating on Infosys, although it now prefers TECHM within the sector.
The brokerage expects +1.4% CC revenue growth q-q including organic contribution of c0.5%, revenue reversal benefit of c0.5% from the previous quarter and inorganic contribution of c0.4%. Vertical-wise, we expect healthy growth driven by BFSI and EURS verticals, partly offset by weakness in Communication, Automotive and Retail verticals, impacted by lower volumes.
The brokerage expects EBIT margin to expand by c19bp q-q as we expect tailwinds from operational efficiencies and favourable cross-currency benefits will be partly offset by headwinds from investments in AI.
- Net Profit falls 62% YoY to Rs 154 crore
- Revenue at Rs 1,935 cr vs Rs 740 cr YoY
Price as on 12.19.21 PM, Click on company names for their live prices.
Despite modest revenue growth, Infosys is expected to post an improvement in operating profitability, supported by cost efficiencies and the absence of certain expenses recorded in the previous quarter. Emkay Global Financial Services estimates that the company’s earnings before interest and tax (EBIT) margin will expand by 50 basis points sequentially.
Brokerages expect Infosys to report sequential constant-currency revenue growth of 1.1% to 1.3% in the September quarter, supported in part by acquisitions and the reversal of a revenue headwind that weighed on the previous quarter.
The key focus of Infosys’ Friday earnings announcement will be whether the company further trims its FY27 revenue growth outlook. In its June-quarter results, the IT services major had lowered the upper end of its constant-currency revenue growth guidance to 3% from 3.5%, while retaining the lower end at 1.5%.
Infosys is projected to post an 11% year-on-year (YoY) increase in revenue and an 8% rise in net profit for the September quarter, based on the average estimates of seven brokerages. However, analysts anticipate that the country’s second-largest IT services provider may cut its full-year revenue growth guidance amid subdued discretionary spending, AI-driven pricing pressures and delays in client decision-making.