Infosys Ltd. share price target

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.

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.

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...

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.

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,...

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...

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 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.