Infosys Ltd. share price target

Infosys in line with its IT peers has withdrawn its revenue guidance for FY21E due to uncertainty led by Covid-19.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 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

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

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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Q3FY20 - A Mixed Bag: Infy s Q3FY20 numbers are a mixed bag packed with both positives and negatives.

Infosys Limited (Infosys) provides business consulting, technology, engineering and outsourcing services. Its end-to-end business solutions include consulting and systems integration. The company also in the business segment of Financial Services, Energy & utilities,...