Infosys Ltd. share price target

EBIT margin came below expectation at 22.6% down by 118 bps QoQ impacted by oneoffs, increased compensation & investments and lower utilisation. We have increased our revenue estimate for FY19/20, given beat in performance in Q3FY19, upgrade in revenue guidance, sustained investments in digital and strong deal wins. We build revenue CAGR of 13% over FY18-21E. However, due to miss in margin in Q3FY19 with continued investments and rupee appreciation, we tweak our EBIT margin estimate by 50/40bps for FY19E/20E. Hence, we maintain HOLD' rating on the stock with a revised rollover TP of Rs. 802...

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....

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....

Infosys reported mixed results with revenues above our expectations and a margin miss. Constant currency (CC) revenues grew 2.7% QoQ (vs. our estimate of 2.2% QoQ) led by BFSI, energy & utilities and manufacturing. US$ revenues grew 2.3% QoQ to $2,987 million Reported EBIT margins fell 120 bps QoQ to 22.6%. However, adjusting for 40 bps one-time impact of Panaya and Skava, EBIT margins declined 70 bps QoQ to 23% led by a dip in utilisation, onsite mix (-80 bps), compensation (-30 bps), investments in sales (30 bps) and acquisition impact (-20 bps). This was partly offset by...

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 &...