Infosys Ltd.’s Q4 FY24 numbers were below consensus estimates. The company has also guided subdued FY25E revenue growth (1%-3% YoY in constant currency terms) mainly due to lower discretionary spend, volatile demand environment and cost rationalisation at clients end. Infosys continues to win vendor consolidation deals and cost efficiency deals. This coupled with strong large deal wins in FY24 ($17.7 billion, with 52% being net new) and ramp up of mega deals we believe the company will achieve higher end of the guidance in FY25E. However, considering robust expectation in past we have tapered our earnings per share estimates lower by 4% and 6% in FY25E and FY26E respectively. Hence we…
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Infosys Q4 Results Review – Improving Discretionary Spend To Be A Key Trigger: IDBI Capital
