Infosys for the quarter ended Jun 2020 registered a consolidated sales of Rs 23665 crore, a growth of 2%QoQ and 9%yoy basis. However on USD terms the revenue for the quarter was down by 2.4%QoQ basis and 0.3%yoy basis. On CC basis the growth was +1.5%YoY basis....

Infosys Limited provides IT consulting and software services, including ebusiness, program management and supply chain solutions. The Group's services include application development, product co-development, and system implementation and system engineering. Infosys targets businesses...

Infosys Ltd (Infy) reported strong broad based growth in Q1 FY21, revenue stood at Rs. 23,665 crs up 8.5% YoY and 1.5% QoQ. Operating profit showed a growth of 20% YoY at Rs. 5,365cr, operating margin grew by 222 bps at 22.7% than previous quarter aided by strong execution, lower utilization

Positive surprise; Clients open up spending on US stimulus? Infosys' 1QFY21 performance on revenue, margin and resumption of guidance has come as a positive surprise, especially in the context of street building in low expectations. But, relatively INFY has done better than its large peers for the quarter thus far TCS and Wipro. Three months back INFY for the first time dropped the practice of giving annual guidance due to lack of visibility. Hence, the fact that it is giving FY21 revenue growth guidance of 0-2% in constant currency (CC) begs the question as to what has changed in the last 3 months. Most companies who have reported numbers in recent times Accenture, TCS, Wipro have...

Despite a higher variable payout (100bp impact), robust EBIT margin expansion (+150bp QoQ) was a key positive. Additionally, sub- optimal EBIT margin levels and headroom for margin expansion, led by back- ended productivity benefits, should translate into strong outperformance on EPS growth (v/s the sector). The EBIT margin improved 220bp YoY / 150bp QoQ despite higher variable travel and visa costs (+230bp), [2] favorable currency (+70bp), [3] reduction in other discretionary costs (+110bp), [4] operational impact low utilization, onsite mix (-150bp), and [5] variable pay (-100bp). The companys absolute and relative performance (v/s TCS and Wipro) during the quarter is indicative of some of the investments made in the previous years Notwithstanding the higher variable payouts, the company delivered robust margin expansion. The EBIT margin improved 220bp YoY / 150bp QoQ despite higher variable pay visa costs (+230bp), [2] favorable currency (+70bp), [3] reduction in other discretionary costs (+110bp), [4] operational impact low utilization, onsite mix (-150bp), and [5] variable pay (-100bp).

Valuation Maintain Buy with a revised PT of Rs. 920: We have revised our earnings estimates upwards for FY2021E/FY2022E, factoring in strong Q1FY2021 results and impressive annual guidance on both revenue and margin for FY2021E. We believe Infosys is well positioned to deliver strong growth in FY2022E because of pent-up demand, strong digital capabilities, and market share gains. At the CMP, the stock is trading at 21x/19x its FY2021E/FY2022E earnings estimates. Infosys is one of the industry leaders with robust execution capabilities and strong balance sheet (cash balance of...

We recommend a BUY on Infosys with a Target Price of Rs 845, an upside of ~8% from CMP of Rs. 783 and Stop Loss Rs 750.

In the last three months, BSE IT index (+31.4%) has performed largely in-line with BSE SENSEX (30.6%). There have been near-term headwinds on growth due to the impact of the Covid-19 pandemic. However, the sector's track record of dealing with headwinds, strong FCF profile, payouts (dividend/buyback) and corporate governance has augured well with robust FII flows and performance of broader markets. Q1FY21 has been another quarter of currency volatility cross-currency movement (negative for reported US$ revenue growth) and INR depreciation (positive on EBIT margin). However, this has been overshadowed by QoQ decline in revenue (in CC) and...

2019. Just a marginal growth in sales was largely on account of flat growth in both Financial Infosys for the quarter ended Mar 2020 registered a consolidated sales of Rs 23267 crore, a Services & Communication, two of three large business verticals of the company in-terms of contribution to topline as well as lower revenue reported by both manufacturing and life sciences. Revenue from financial services segment was flat (up 0%) at Rs 7282 crore (or 31.3%...

Maintain BUY with TP of Rs 680, at 16x FY22E EPS. Infosys (INFY) delivered rev/margin below estimates in 4Q. While near-term performance will be marred by demand dent across verticals, subsequent recovery will be supported by (1) Strong growth in digital (42% of rev), (2) Resilience in large deal wins (bookings tracking well), (3) Market-share gains from vendor consolidation, and (4) Operational prudence & favourable onsite supply metrics.

Infosys (INFO) reported a lacklustre Q4FY20 operating performance marked by a miss on both revenue and margins.

Market was focused on Infosys' guidance if any on FY21 and assumptions behind it. For the very first time in 20 years after it started the practice of giving annual guidance, Infosys has suspended it due to lack of visibility post Covid-19. We suspect that the flat net new TCV number in FY20 (unlike the 3.4x in FY19 versus FY18) also likely contributed to it. Infosys also refused to call out any quarter wise trajectory (unlike the soft' guidance given by TCS the other day (In stormy waters) as it felt that multiple scenarios on the medical/lockdown front could play out. To that extent, we think Infosys has been more realistic and is not taking a V' shaped recovery as a high probability event. After going through three large companies'...

Infosys in line with its IT peers has withdrawn its revenue guidance for FY21E due to uncertainty led by Covid-19. The company in line with other peers expects near term revenues to be under pressure due to demand and supply related challenges. Slower client decision making, delay in projects, pricing pressure and lower discretionary spend are expected to impact near term performance. However, we expect the company to see improved revenue trajectory from H2FY21E. In terms of long term drivers, we expect acceleration in digital technologies, the company's ability to win large deals,...

Infosys' (INFO) Q4FY20 revenue in CC saw a 0.8% QoQ decline vs. our forecast of a 0.3% growth. EBIT declined by 75bps QoQ to 21.2% vs. our forecast of a 30bps QoQ decline. EPS of Rs10.2, -3.1%/+8.7% QoQ/YoY was in-line with our forecast aided by lower ETR. In Q4FY20 it has secured large deals with TCV of US$1.6 bn (net new wins being ~56%) taking the FY20 TCV to US$9 bn. Given the uncertainty over the impact of Covid-19 pandemic INFO has suspended giving annual guidance, in-line with our expectation. We largely maintain our forecast of revenue (US$) and EPS CAGR of 4.4%/4% over FY20-22E. We maintain our TP of Rs678...

Infosys Ltd revenue stood at Rs. 23,267 crs up 8% YoY and 0.8% QoQ. Operating profit showed a growth of 6.7% YoY at Rs. 4,927 crs, while operating margin declined by 80 bps at 21.2% (vs. 21.9% in Q3FY20) due to lower utilization & increase in H1 B visas fees

We have marginally cut our FY21/FY22E EPS estimates as we build in heavier pricing pressure, the impact of which is partially offset by the change in our In 4QFY20, revenue (USD)/EBIT (INR)/PAT increased 4%/7%/6% YoY (v/s our As client approvals for WFH were not received in certain cases, revenue INFO witnessed broad-based decline across geographies with its Indian business witnessing the most pronounced impact (-8.5% QoQ, USD). While there would not be COVID-19 related lay-offs, involuntary attrition related Suspension of salary hikes, promotions, incremental hiring and reduction in travel costs, capex and discretionary spends are key margin defenses. In 4QFY20, revenue (USD) / EBIT (INR)/PAT increased by 4%/7%/6% YoY (v/s our INFO witnessed broad-based decline across geographies with its Indian business witnessing the most pronounced impact (-8.5% QoQ, USD). However, we take a leap of faith in the companys ability to navigate through these issues given its historical track record of adapting to multiple business We expect INFO to be a key beneficiary of recovery in IT spends in FY22E.

Nifty IT index has corrected 16% since last one-month factoring in potential demand shock from COVID-19 spreading to key client markets (US/ Western Europe) along with oil price shock and potential impact on global growth. The COVID-19 crisis in our view will have more severe impact on global economy than GFC as its severity is increasing on day-to-day basis. As Indian IT growth expectation is anchored to global economy, COVID-19 could derail it...

Infosys may see short term impact of COVID 19 outbreak but company can efficiently manage from remote systems to ensure timely delivery of the outsourced business. The COVID impact has been seen majorly on consulting business while outsourcing business still remains robust.

The spread of Covid-19 has led to lockdowns in many countries globally and could have adverse economic implications. In addition, the recent fall in crude prices could also have an adverse impact of fiscal health of oil producing countries. As a result, IT companies, which have considerable exposure to verticals such as oil, energy & utilities; banking & capital markets; manufacturing and travel & transport could see an adverse impact from the ongoing crisis. Companies like Wipro, Infosys in large cap and MindTree, NIIT Tech, Sonata software, Cyient, Accelya Solutions among...

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