Infosys, Wipro Q4 Preview - No Change In Relative Positioning Despite Worsening Macros: ICICI Securities

"BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Securities Report.We expect Infosys Ltd.’s revenue growth to be soft at 0.1% QoQ constant currency, given Q4 FY23 is a seasonally weak quarter for Infosys. This translates to 16.4% YoY CC growth in FY23E within the company’s guided range of 16-16.5%. We estimate 110 basis points cross-currency tailwinds in Q4 FY23. We model 21.5% Ebit margin, flat QoQ in Q4 FY23 and 21.2% in FY23, in line with management commentary of achieving margins near the lower end of guidance of 21-22%. Large deal wins were strong in Q3 FY23 at $3.3 billion (20% QoQ, 31% YoY), partly aided by the closure of a bunch of license deals. Pipeline is replenished, but we expect deal total contract value in the range of $2.5-3 billion, decline on QoQ basis. We expect Infosys to start the year with conservative guidance of 6-8% given the recent events in global banking industry (banking, financial services and insurance accounts to 32% of Infosy’s annual revenue) and overall caution in new deal singings..We expect Wipro Ltd.’s revenue to decline by 0.5% QoQ CC in Q4 FY23, translating to 11.5% YoY CC growth in FY23E, near the lower end of the guided range of 11.5-12% in FY23, given the weakness in consulting business and worsening macro environment. We estimate ~100 bps cross-currency revenue tailwind for Wipro. We expect Ebit margin to be largely flattish (~20- 30 bps), QoQ expansion in Q4 FY23. We expect Wipro to guide -1% to up 1% QoQ CC revenue growth for Q1 FY24..Click on the attachment to read the full report:.IT Services Outlook - BFSI To Drag FY24 Growth, But Structural Demand Intact: Motilal Oswal.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Infosys, Wipro Q4 Preview - No Change In Relative Positioning Despite Worsening Macros: ICICI Securities

Infosys a high quality company with ability to gain market share, Wipro's revenue growth to continue lagging peers.

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

Infosys, Wipro Q4 Preview - No Change In Relative Positioning Despite Worsening Macros: ICICI Securities

Infosys a high quality company with ability to gain market share, Wipro's revenue growth to continue lagging peers.

Choose a plan

Follow Us

DOWNLOAD THE APP