Infosys Q3 Results Preview: Muted Revenue Growth Expected, Guidance May Be Revised

Infosys' revenues in the third quarter is expected to grow by 0.3% sequentially despite residual revenues from in-tech acquisition due to usual seasonality in the third quarter.

"We expect margins to be steady QoQ, aided by INR depreciation. We expect Infosys to narrow its FY25 revenue growth guidance to 4–4.5% YoY from 3.75–4.5% YoY and maintain margin guidance of 20–22%. Expect the large deal TCV to be $2.5–3 billion," Jefferies said.

JM Financial expects 90-basis-point cross currency headwind sequentially and estimates an impact of 130 bps of furloughs. "Lower transition costs associated with large deals could benefit margin, though lower growth will limit the extent of expansion. Expect Infosys to revise its guidance to 4–4.5% YoY," the brokerage said.

Besides furloughs, stabilisation in the large deal ramp, which had aided growth in the first half, could restrict sequential growth, it added.

"Expect deceleration in revenue growth after very strong 1H. We expect 0.5% QoQ growth. Weakness will be led by a higher base of mega deal ramp-ups in 1H, furloughs and weakness in Auto and Hi-Tech. This will be offset by traction in BFSI. Further, strong momentum in less than $50-m deals is expected," according to DAM Capital.