Infosys to announce Q3 results on January 11; shares gain 3%

In the September quarter, the Bengaluru-based IT major narrowed its revenue growth guidance for the financial year 2024. Infosys trimmed the upper end of its revenue growth guidance by 100 basis points to 1-2.5% from 1-3.5% earlier. It maintained its EBIT margin guidance for the year at 20-22%.

Infosys narrowed its guidance band despite winning its highest-ever deals worth $7.7 billion during the quarter. 48% of that were new deals.

The company's MD and CEO Salil Parekh told reporters in a post-earnings conference that he has "no view" on how the financial year 2025 will turn out for the company.

The US-listed shares of Infosys fell over 3% on December 11, after the company said Nilanjan Roy has resigned from the post of chief financial officer (CFO) of Infosys, and March 31 will be his last day in the office. Deputy CFO Jayesh Sanghrajka will take over starting the new financial year on April 1.

Deputy CFO Jayesh Sanghrajka will take over starting the new financial year on April 1.

This is the 10th major exit under CEO Salil Parekh's second term at the helm of Infosys. In May 2022, Salil Parekh received an extension as the MD and CEO of Infosys until March 31, 2027.

Since October 2022, Infosys has seen exits of major top level personnel like Ravi Kumar, Mohit Joshi, both of whom were Presidents of their verticals, K Gopikrishnan, SVP & Head, ERD, Richard Lobo, EVP & Head, HR, Narasimha Rao, EVP and head of Cloud & Infra among others.

Some of the top management personnel that quit Infosys have gone on to lead competitor companies.

Interestingly, Ravi Kumar, Mohit Joshi, and Kapil Jain were all appointed as CEOs in smaller organizations— Cognizant, Tech Mahindra, and eClerx, respectively.

Global brokerage firm Morgan Stanley believes that the resignation of Roy as CFO was unanticipated and could weigh on the stock sentiment in light of the past senior exits. However, it expects the transition to be a smooth one. The brokerage remains 'Overweight' on Infosys with a price target of ₹1,600.

Out of the 45 analysts that track Infosys, 21 continue to have a "buy" recommendation on the stock, 15 say "hold," while nine of them have a "sell" rating.

The stock was trading 2.77% higher at ₹1,543 on Friday. Infosys is the only stock on the Nifty IT index that has given the least returns so far in 2023.