Infosys Ltd. share price target

Cost optimisation/vendor consolidation to be the prime growth driver for Infosys in FY25

Infosys announced relatively underwhelming Q4FY24 results, with revenue falling short of our expectations, while profits exceeded our forecasts largely on the back of substantial other income.
Revenue of INR 3,79,230 Mn (+1.3% YoY) was led by growth in the Communication (+4.2% YoY), Energy, Utilities, Resources & Services (+1.5% YoY), and Hi-Tech (+8.7% YoY) segments, although it fell short of our estimates by 3.2%.

Infosys reported a disappointing operating performance in Q4. Revenue
declined 2.2% QoQ in cc terms, falling short of our expectations. Weakness was
on account of persistent muted discretionary spending, along with a one-time
impact of ~100bps due to re-scoping & re-negotiation with a large BFSI client.

Infosys reported a disappointing operating performance in Q4. Revenue
declined 2.2% QoQ in cc terms, falling short of our expectations. Weakness was
on account of persistent muted discretionary spending, along with a one-time
impact of ~100bps due to re-scoping & re-negotiation with a large BFSI client.

we recommend a SELL rating on the stock until uncertainties settle down.

Infosys reported weak revenues at $4,564 million, down 2.2% q-o-q in CC terms, missing our estimate of $4,646 million. Revenue in rupee terms stood at Rs 37,923 crore, down 2.3% q-o-q/up 1.3% y-o-y.

INFO reported muted revenue of USD4.56b in 4QFY24, down 2.2% QoQ in
CC terms, below our estimated decline of 0.1% QoQ CC. The weak 4Q was
partially driven by a 100bp one-off hit from re-scoping part of work the
company does for a large BFSI client.