Infosys Q3 Review: Resilient margins amidst macroeconomic headwinds, Q4 margins expected to see 60 bps benefit

IT major Infosys delivered a better than consensus revenue growth while the margin was in-line with consensus estimates. Infosys, on Thursday, posted Q3 profit for FY 24 at Rs 6,106 crore, down 7.3 per cent as against Rs 6,586 during the third quarter of FY23. It posted revenue from operations at Rs 38,821 crore, marginally up by 1.3 per cent in comparison to Rs 38,318 crore during the same period last year. Aditi Patil, Equity Research Associate, ICICI Securities, said, “Infosys reported revenue decline of 1 per cent QoQ CC vs. our/consensus expectations of -0.2 per cent/-1.5 per cent QoQ CC. Decline was driven by furloughs, one-time impact due to McCamish cyber incident and continued weakness in discretionary spends. Impacted verticals of communication, retail, hi-tech and financial services continue to report weak revenue growth. Manufacturing vertical growth has been resilient due to a ramp-up in large deals won in previous quarters.”