Infosys Q3 Review: The Stage Is Set For A Liftoff In FY25

Infosys Ltd. is now set to deliver a “very strong” first half in fiscal 2025—one that may just lift Indian IT out of the funk it’s been under for more than a year.

Here’s look at what analysts had to say about Infosys’ Q3 results:

Jefferies

• Net new order book impressive with growth guidance narrowed

• Headcount decline suggests demand unlikely to recover

• Margins healthy, FY24 guidance achievable

HSBC

• Q3 has not materially impacted FY25 EBIT estimates

• Minor cut in EPS estimate for Infosys on higher tax, lower other income

• Prefer Infosys on cheaper valuations, faster growth potential

DAM Capital

• Q3 marks third consecutive quarter of guidance cut

• Ramp-up in deals will start from FY25 with strong H1

• Increase in utilisation should further support margins in FY25

Motilal Oswal

• Q3 revenue better than expected, EBIT margin marginally ahead

• Large deal TCV momentum intact, strong traction in large deal pipeline

• Lower than expected wage hike and workforce reduction aided profit

• Margin should bottom out in FY24