On April 13, software company Infosys Ltd will report earnings for the 4th quarter and the financial year ends March 2023. While the March quarter performance is going to be crucial for estimating the impact of the global economic downturn, Dalal Street is going to concentrate on the projection for FY24.
Infosys shares fell more than 5% in the month of March, due mainly to the economic downturn in the United States and Europe. This became worse by local financial insecurity following the failure of Silicon Valley Bank and the Credit Suisse crisis. Infosys has a 26% exposure to the banking and financial services sector, excluding insurance. In terms of region, Infosys' BFSI exposure in Europe was roughly 5%.
Following the announcement of the December quarter profits, leadig IT corporations stated that the economic slowdown in the United States and the United Kingdom had no major impact on technology investment, and that the view for the deal pipeline in 2023 was fair for most large US banks. But with the crisis in the banking sector, investors will closely watch the change in the tone of the management on the spending front.
The ongoing development problems, experts generally predict Infosys will beat Tata Consultancy Services in FY24, with global ratings agency Moody's Investors Service predicting 8% revenue growth for Infosys and 5% for TCS.
