IT major Infosys will announce its second-quarter results on October 12. The Board will also consider a proposal to declare an interim dividend for FY24.

“The financial results and proposal for interim dividend, if any, will be presented to the Board of Directors on October 12 for their approval,” the company said in a filing.

In the first quarter, the Bengaluru-based software exporter provided a sceptical revenue growth guidance of just 1-3% (CC terms) in FY24 as against 14-16% in FY23.

It had also forecast operating margins to hover in the range of 21-23% in FY24, which will be supported primarily by higher offshoring and a richer service mix.

The low single-digit growth in the current fiscal is mainly because of macroeconomic uncertainties. The higher onsite expenses also put operating margins under pressure.

The company has reported 11% year-on-year (YoY) growth in net profit at Rs 5,945 crore for the quarter ended June as clients cut back spending and delayed making decisions on future projects in a challenging economic environment.

Revenue for the June quarter jumped 10% YoY to Rs 37,933 crore.

In constant currency terms, the company’s revenue rose just 1% quarter-on-quarter, while the consolidated operating margin came in at 20.8%, down 20 basis points sequentially.

Analysts say the key strategies for the company going forward include focus on strategic clients to provide long-term and sustainable growth, deepening research and innovation strength and further expanding footprint across the globe.

Axis Securities has a “SELL” rating on the stock as it assigned a 20x P/E multiple to its FY25E earnings of Rs 63.7 per share to arrive at a target price of Rs 1,300, implying a downside of 13% from the current levels.

On Thursday, the company’s shares closed 0.48% higher at Rs 1,505.55 on NSE.

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