Infosys Ltd. share price target

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.

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.

Recommendation: In light of demand challenges in the medium term and supply-side constraints, we expect Infosys to report sluggish growth in FY24. Hence, we recommend a SELL rating on the stock until uncertainties settle down.