Infosys will announce its fourth-quarter results on April 20, according to a notification to the stock exchanges.

The IT major is typically first off the block when it comes to the announcement of quarter results, but because of the unusual circumstances arising out of the coronavirus pandemic, it decided to postpone the declaration of the results by a week.

According to analysts tracking Infosys, the company may see short-term impact of Covid-19 outbreak, but it has the ability to efficiently manage from remote systems to ensure timely delivery of the outsourced business. “The Covid impact has been seen majorly on consulting business while the outsourcing business still remains robust. Direct exposure to the Covid-19 affected regions and verticals is sub 1 per cent, and it has not seen any meaningful delivery disruption either,” Axis Securities said in a note to the investors.

Deal trend

It said that the IT service provider’s engagement with its partner network has expanded beyond certifications into set-up of co-innovation centres, building industry solutions, ISV (independent software vendor) partnerships and joint sourcing of deals. These partnerships play a significant role in implementation, rollouts and upgrades, validation and support services.

The recent deal trend continues to be healthy for Infosys and is reflective of traction in manufacturing/industrial and retail verticals. Infosys also received various digital transformational deals worth more than $1.8 billion in the recent quarters. “We believe that the Covid outbreak will create huge opportunity across geographies for Infosys to post strong organic growth over different verticals,” the note said.

Infosys reported strong topline growth and healthy deal wins in Q3 FY20. It posted revenue growth of 9.5 per cent YoY and 1 per cent QoQ in constant currency terms during the same period. Infosys reported steady deal wins (14 large deals) with a total contract value of $1.8 billion despite Q3 being a seasonally weak quarter. Operating margins improved by 22 bps to 21.9 per cent sequentially. The operating margins were in line with the guided range of 21-23 per cent.

Published on April 14, 2020