Infosys Ltd. share price target

Healthy performance on margin, deal TCV, digital front Expect revenue growth in FY20E to surpass guided range Infosys reported a 3.3% QoQ revenue growth in constant currency with Stater acquisition contributing ~1% to it. Infosys' Q2 performance is better than TCS. The company is expected to continue to perform healthily in coming years. Besides retail & communication, growth was all rounded across verticals. Insights from the future outlook with regard to verticals indicates: 1) financial services to be soft on the back of weakness in capital...

Infosys reported a decent quarter with inline performance on revenues & margins. Infosys narrowed their guidance band (8.5%-10% CC) to (9-10% CC) inline with our expectations. Infosys reported revenue growth of 3.3% CC QoQ (Ple: 3.5%, Cons:3.6%) & organic cc growth stood at 2.4% CC QoQ slightly lower than our estimates of 2.6% CC QoQ. EBIT margin was inline with our estimates at 21.7% (Ple:21.6%, Cons: 21.4%) aided by increase in utilization, cost optimization, lower visa cost & travel costs....

Infosys (INFO) met expectations with 3.3% QoQ CC revenue growth and 21.7% EBIT margins, delivering a better performance than TCS in Q2FY20.

Revenue from Digital grew 38.4% YoY CC, contributing 38.3% of total revenue in EBIT margin improved 120bp QoQ to 21.7%, 40bp beat to our estimate of 2QFY20 margin factored in [1] the impact from the absence of visa costs (+110bp) and [2] higher utilization and cost optimization (+110bp), partially offset by [1] compensation increase (-70bp) and [2] donations (-30bp). On a sequential basis, [1] the absence of visa cost boosted the margin by +110bp, [2] INR depreciation was offset by cross-currency headwinds, resulting in a negligible impact, [3] higher utilization and cost optimization (automation, increased offshore mix) had +110bp impact, which was offset by [4] compensation increases (-70bp) and [5] donations (-30bp). INFO has seen its margins correct amid investments in delivery and sales capabilities to win in the Digital era, and that has finally been yielding strong deal wins and improved revenue growth also reflected in Digital surpassing 35% of revenues.

EBIT margins beat our estimates, management retained EBIT margin guidance band at 21-23% for FY2020E Continued strong digital growth, up 38.4% y-o-y...

Infosys Limited is the second-largest Indian IT company that provides business consulting, information technology and outsourcing services. The Group's services include application development, product codevelopment, system implementation and system engineering, targeting...

Infosys Ltd. reported strong growth in top line and healthy deal wins for the period of Q1FY20. Infosys posted revenue growth of 10.6% on YoY basis and 2.3% sequential growth in constant currency terms for the period of Q1FY20.

As a positive surprise, INFO has increased its FY20 revenue guidance to 8.5%-10% YoY in CC from 7.5%-9.5%, we were expecting it at the end of Q2FY20. Large deal win TCV hit an all-time high of US$2.7 bn. Further, payout has been increased to 85% of FCF over a 5-year period from FY20 onwards vs. 70% earlier....

Infosys reported 2.8% sequential revenue growth in constant currency with Stater acquisition contributing 60 bps to it. This quarter growth was broad based and across verticals with communication and Energy & utilities segment leading in terms of growth trajectory. Going forward, retail, communication and energy & utilities are expected to drive growth while BFSI & manufacturing are expected to be under pressure (due to weakness in capital markets, European banks and softness in European auto). Retail segment is expected to witness acceleration mainly led by higher spending...