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Published: Apr 13, 2023
Updated: Apr 13, 2023

Infosys Q4 Results Preview: Revenue Growth, Dividend, and More

Infosys, the Indian multinational IT firm, is set to announce its Q4 results on April 13. In this article, we will cover the company's earnings preview, guidance, dividend history, and more.

Q4 Earnings Preview

According to Kotak Institutional Equities, March is usually a weak quarter for Infosys. The brokerage does not anticipate significant incremental revenue contribution from the recent Daimler deal. Analysts expect Infosys to report a 15% YoY net profit increase on a 20% YoY net sales rise. However, deal wins are predicted to be flat on a sequential basis. Furthermore, EBIT margin is expected to increase marginally.

Guidance for FY24

HDFC Institutional Equities predicts that Infosys will guide for 5-8% revenue growth in constant currency (CC) terms and a 14.9% YoY net profit increase. The brokerage expects Infosys to log an EBIT margin of 21-23% for FY24. Analysts will closely monitor large deal intake and updates on client conversations. Additionally, they will track Infosys' positioning in vendor consolidation, cost-takeout opportunities, and the impact of recent banking sector events on BFS client spends.

Dividend History

Infosys announced a dividend of Rs 16.50 per share worth Rs 6,940 crore in FY23. The company paid a total of Rs 6,309 crore in dividends in FY22 and Rs 5,112 crore in FY21. In contrast, HCL Technologies and TCS paid Rs 11,391 crore and Rs 7,686 crore, respectively, in dividends for FY22. TCS paid Rs 8,510 crore in dividends in FY21, while HCL Technologies paid Rs 2,714 crore. As of the latest closing, Infosys commands a dividend yield of 2.20%, which is higher than TCS' 1.34% and Wipro's 1.62%. Tech Mahindra (4.10%) and HCL Technologies (3.86%) offer the highest dividend yield in the tier I pack.

Experts predict a steady rise in net profits and sales for Q4

Analysts expect Infosys to report a steady rise in net profit and net sales for Q4. They also anticipate the company to guide for a 5-8% revenue growth in CC terms and a 21-23% EBIT margin for FY24. The announcement of Infosys' final dividend for FY23 will also be closely watched. With a dividend yield of 2.20%, Infosys offers an attractive option for investors seeking steady returns.