As the earning season has kicked off, with several companies already announcing their results and many more set to follow suit, one of the leading IT giants in the country, Infosys, is scheduled to announce its Q3FY25 result tomorrow, January 16.

The third-quarter financial results for Infosys, ending December 2024, will be a major highlight tomorrow as the investors and analysts will be eagerly waiting for insights into the company’s financial performance over the period, its growth, and future prospectus, drawing attention from all corners of the market.

Let’s take a look at the 6 key things you need to know about the IT giant ahead of its Q3 release.

Q2FY25 earnings overview

Infosys, in the second quarter of FY25 which ended in September 2024, posted a revenue of Rs 40,986 crore, a 5.1% surge compared to the same quarter last year as well as a 4.2% rise from the previous quarter. The net profit of the company stood at Rs 6,506 crore, marking a 4.7% growth year-on-year and a 2.2% increase from the last quarter.

Furthermore, the IT service provider maintained an operating margin of 21.1%, in its Q2FY25 earnings.

Revised revenue guidance

After it announced the Q2 financial results on October 17, 2024, Infosys increased its full-year revenue growth forecast for FY25 to a range of 3.75% to 4.5%, up from the previous estimate of 3-4%. This revision was based on the positive trends in demand, especially within the Banking, Financial Services, and Insurance (BFSI) sector.

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Stock Performance

Ahead of Infosys’ earnings release tomorrow, the company’s shares were trading flat during the early hours of January 15, rising by 0.42% to Rs 1,948.15 per share, with an opening price of Rs 1,947.00.

As of now, the market capitalisation of the company stands at Rs 8.08 lakh crore.

Over the past month, the company’s stock has seen a decline of 1.56%. However, over the past year, Infosys stocks has surged by 18%, outperforming peers in the IT sector. The stock reached a 52-week high of Rs 2,006.45 and a low of Rs 1,358.35. Recent technical indicators show a bearish trend, with moving average crossovers suggesting possible short-term declines. The P/E ratio is 29.26, with an EPS of Rs 66.50, reflecting its higher valuation compared to earnings.

When compared to other major IT companies, Infosys as of now shows a better one-year returns, with an 18% increase, while TCS saw a lower return of 8.21%.

Revenue growth expectations and net profit projections

Infosys is expected to report a 0.6% increase in its revenue, reaching Rs 41,222.3 crore for Q3, as per various brokerages.

Kotak Institutional Equities, one of the brokerages, has predicted a 0.7% sequential revenue growth, highlighting that no significant challenges or advantages are expected to impact the company during the quarter. Meanwhile, JM Financial believes that lower transition costs from large deals could contribute positively to the company’s margins, although overall growth might limit the extent of margin expansion.

On the other hand, Nuvama anticipates a 0.8% growth in revenue, but its outlook for constant currency terms is more conservative due to potential currency fluctuations. Elara Capital, on the other hand, predicts a slight dip in revenue, forecasting a 0.3% decrease in constant currency terms and a 1% drop in revenue when measured in US dollars.

Coming to the net profit projections, as per reports, Infosys consolidated net profit is projected to rise by 3.5%, reaching Rs 6,736.4 crore.

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Announcement Schedule

Infosys is set to announce its earnings results for Q3 on January 16, at 3:45 PM IST. Following the release, a press conference will take place at 4:30 PM IST. Later, at 6:30 PM IST, senior management will participate in an earnings call to discuss the results in detail and also to answer questions from analysts and investors.

Recent developments

In December 2024, the company expanded its partnership with Microsoft to promote the global adoption of generative AI and Azure services.

Infosys declared an interim dividend of Rs 21 per share in December 2024, a 16.7% increase from the previous year .

Apart from this, the company is also dealing with employee attrition rates and plans to manage hiring. Further, the company has decided to delay annual wage hikes until Q4 of FY25 as part of efforts to control costs and improve operational efficiency.