OPM fell 280 basis points to 23.2% which saw OP fall 7% to Rs 4959 crore. Other income grew 2% to Rs 753 crore. After providing for depreciation (up 25% to Rs 580 crore), PBT fell 9% to Rs 5132 crore....

Infosys (INFO) Q3FY19 result beat ours and consensus forecast as regards revenue growth metrics CC growth of 2.7% QoQ, large deal TCV of US$1.57 bn and upward revision of FY19 revenue growth guidance to 8.5%-9% in CC. However, EBIT margin decline of 120bps QoQ to 22.6% was a miss....

Closing In On Double-digit Growth: Is It The Cycle Or The CEO? Infosys hit double-digit YoY revenue growth in 3QFY19 in constant currency (CC) terms after a gap of 10 quarters. It also delivered large deal TCV of US$1.57bn in a historically lean quarter. YTDFY19 TCV is 2.1x on YoY basis. EBIT margin was a tad softer than even the cautious guidance that Infosys had given (unlike TCS), largely driven by a one-off. Based on a strong 3Q and order inflow, Infosys revised its FY19 revenue growth guidance to 8.5%-9% CC from 6%-8% earlier. It kept EBIT margin guidance constant at 22%-24%. All of the above (except the margin part) have been positive surprises for the market. However, sustainability of this robust growth in revenues and TCV is the...

Led by solid revenue growth in Q3FY19, we raise Infosys USD revenue growth Change in Estimates | Target | Reco assumptions to 7.8/9.3/9.2% for FY19/FY20/21E (vs 7.5/9.2/9.2% modeled earlier). Infosys would need to deliver 1.9% QoQ in cc in Q4FY19 to achieve...

Industrial growth declined to 0.5% in Nov'18 from 8.4% in Oct'18. Manufacturing growth fell sharply to (-) 0.4% from 8.2% in Oct'18. Both consumer (durables and FMCG) and capital goods sectors reported a decline. While base effect explains a part of the decline, lower exports and domestic demand also contributed to the dip. We expect muted growth in the next few months owing to global and domestic headwinds. However, this slowdown is more cyclical than structural and growth is expected to pick up in H2FY20....

Maintain BUY with TP of Rs 800, 18x Dec-20E-EPS. Infosys (INFY) posted strong revenue performance, robust large deal bookings and increased its FY19E rev guidance. However, operating performance was soft impacted by accelerated hiring, lower utilisation (seasonality impact) and higher onsite-mix (large deal transition). Revenue came at USD 2,987mn, 2.7/10.1% QoQ/YoY in CC terms.

Infosys reported 2.7% qoq revenue growth in CC terms in Q3 (2.4% on an organic basis), ahead of our estimate of 1.5% CC growth, and raised the upper end of its 6-8% CC growth guidance (provided at the start of the year) by 50-100bps to 8.5-9.0% for FY19. Adjusted operating margins stood at 22.9%, down 80bps qoq (reported OPM down 110bps qoq), largely on account of attrition-led compensation increases (-30bps), drop in utilization...

11 January 2019 YoY CC five quarter ago. Investments, however, continued to take a toll, with the INFOs EBIT margin has shrank by 210bp over the last eight quarters, during which the INR has depreciated by ~6%. Adj. PAT grew 8% YoY to INR39.9b (1% beat) in 3QFY19. INFO announced (a) buyback of INR82.6b under the open market route at a maximum price of INR800/share and (b) special dividend of INR4/share, in line with its announcement of USD2b payout to shareholders. INFO won 14 large deals in the quarter with a TCV of USD1.57b, taking the 9MFY18 deal value to USD4.7b (+2.2x YoY). INFO raised its full-year revenue guidance to 8.5-9.0% QoQ CC, which implies a 4Q ask-rate of 0.3-1.

Strong deal wins lend confidence to growth trajectory Infosys is India's second largest IT company. It provides services across various verticals such as Financial Services (FS), Manufacturing (MFG), Energy & Utilities, Communication &...

Infosys Ltd Q2FY19 results Comment Revenue rose by 7.74% to Rs. 20609.0 Cr in Q2FY19 when compared to the previous quarter. Also, it rose by 17.32% when compared with Q2FY18.

Infosys's (INFO) Q2FY19 result was in-line with our forecast as regards headline numbers. While revenue growth of 4.2% QoQ in CC and TCV of US$2bn (highest till date) beat our forecast, EBIT margin of 23.7%, unchanged QoQ, was a miss. Digital revenue is now 31% of INFO's revenue and grew by 13.5%/33.5% QoQ/YoY in CC. INFO has maintained FY19 guidance. While we were forecasting it to maintain the revenue growth guidance, we were expected it to increase EBIT margin guidance. We factor FX rate of R70 vs. Rs68 earlier for H2FY19 and FY20. We increase our FY19/20E EPS by 1.6%/4.6%. We now forecast FY19/20 revenue growth in CC at...

Financial Services & Retail Power the Verticals, Digital Revenue Robust A major positive in 2QFY19 was impressive growth in Financial Services (+5.8% QoQ in CC terms) and Retail (+5.9%) verticals. Stable demand environment and waning client-specific issues augur well for these verticals, which contributed ~50% to Infosys' total revenue (49.1%). Notably,...

Strongest TCV Ever, But At A Cost; We Like The Growth Focus ACCUMULATE Shrugging itself off from a turbulent 2017, Infosys recorded best ever large deal total contract value (TCV) in its history of US$2bn (previous highest ~US$1.2bn) in 2QFY19, against our expectation of US$1.5bn. 63% of the TCV is net new Infosys has been perennially plagued not only by its low TCV (compared to its size), but also by the fact that most of it was renewal, which did not help drive growth. A large part of this surprise has to do with: (1) The red-hot demand environment the best since the Global Financial Crisis of 2008-09. (2) Fairly aggressive bidding. The US$700mn Verizon deal is a case in point. Infosys is not a recognised...

ICICI Securities Ltd | Retail Equity Research US$ revenues grew 3.2% QoQ to $2,921 million (above our estimate of 2.2%) mainly led by healthy growth in BFSI and retail. Constant currency (CC) revenues grew 4.2% QoQ vs. our estimate of 3% QoQ. Rupee revenues grew 7.7% QoQ to | 20,609 crore At 23.7%, EBIT margins were flat QoQ mainly led by higher compensation (-100 bps), subcontracting cost (-50 bps) offset by rupee depreciation (+80 bps) and pricing, onsite mix (+70 bps)...

Maintain BUY with TP of Rs 800, 18x Sep-20E-EPS Infosys (INFY) posted strong revenue and deal bookings, offset by soft operating performance and static guidance (conservative). Revenue came at USD 2,921mn, 4.2/8.1% QoQ/YoY in CC terms, ahead of TCS sequential performance. EBIT margin was flat at 23.7% with INR gains impact (+80bps QoQ) and pricing (+70bps), offset by higher variable pay and senior workforce wage increase (-100bps) and higher sub-contracting expense (-50bps). APAT at Rs 41.10bn was supported by lower ETR.

Strong Revenue beat: Infosys 2QFY19 results were a mixed bag. Revenues at Change in Estimates | Target | Reco USD2921mn were up 3.2% QoQ and above our estimates (Ple: USD2890mn)....

Strong deal wins in Financial services ( 32% of revenue): Growth is likely to revive from Q2 on the back of strong deal wins in the quarter (USD 446 mn) and continued momentum in tier-II and regional banks.

In 1QFY19, INFO signed USD1.1b TCV of deals, including multiple large deals in the US BFS. The company breached the aspired figure of USD1b after multiple quarters, and cited a strong pipeline that would help their efforts to sustain the same. In 2QFY19, INFOs two deals themselves added up to USD1b+, and there could be more. Prior to this, the company beat Germany-based IT service provider Arvato (link) to clinch USD300m deal from Microsoft. While US BFS saw large deal wins in the last quarter, the segments performance in Europe saw a decline in revenues, which was a cause for concern. INFOs LTM attrition in the last quarter spiked up to 20.6% - a historical high. More disconcerting for the company was elevated attrition in the category of high performers as well.

Several investments are lined up for the remaining quarter. Total revenue per employee increased by 3.5%. Management has finalized a interim dividend of Rs 7/share....

Rupee depreciation led to upgrade: The recent sharp rupee depreciation (around 5% in the past one month) is likely to result in higher upside in EBIT margin and EPS for Infosys, considering 67% revenue booking from USD, lesser cash flow hedges and lower offshore revenue mix (45.4% in Q4FY2018). Since the beginning of Q2FY2019, USD/INR rates have witnessed correction of...