Infosys Ltd. share price target

ICICI Securities Ltd | Retail Equity Research Infosys made an announcement on bonus shares with its Q1FY19 results on July 13, 2018. The ratio was one bonus share for every existing equity share i.e. 1:1. The record date for the same is September 5, 2018 while the ex-date for the same is today i.e. September 4, 2018. Consequently, Infosys share price, as per yesterday's closing price, has dropped to | 717/share from...

Mr M D Ranganathan resigns from the role of CFO after a stint of 18 years (3 years as CFO; term ends on Nov 16, 2018) to pursue opportunities in new areas. The hunt for the new CFO has begun and Mr Jayesh Sanghrajka (Deputy CFO) can be a possible candidate for the replacement. But, given Infosys' recent preferences, we cannot rule out the possibility of an external candidate. While no specific reason has been mentioned for Mr Ranganathan's untimely exit, we see following 3 possible factors that could have triggered this event: (1) Mr Ranganathan's wanted to pursue CEO's role, which was ruled out at Infosys post the appointment of Mr...

WE factor EBIT margin at the higher end of guided range at 23.8% for FY19E on the back of continued acceleration in digital, improvement in productivity, onsite pyramid rationalization and increased adoption of automation. We continue to maintain our HOLD' rating on the stock with a revised TP of Rs. 1,404...

Revenue rose by 5.78% to Rs. 19128.0 Cr in Q1FY19 when compared to the previous quarter. Infosys Ltd Q1FY19 results Comment

Infosys's (INFO) Q1FY19 result was in-line with our forecast. Digital revenue is now 28.4% of INFO's revenue and grew by 8%/26% QoQ/YoY in CC. It has secured 8 large deals, importantly the TCV has crossed US$1bn mark. The only negative in Q1 was...

Concerns remain on the lower margin guidance despite FX tailwinds USD revenue grew 0.9% QoQ in line with our estimates; 2.3% QoQ in CC terms. EBIT margin declined 104bps QoQ at 23.7% due to negative impact of wage hike and visa cost. INFO maintained its revenue guidance to 6%8% (CC terms) which translates into a CAGR of 0.3%-1.5% over three quarters. The management has also maintained its EBIT margin guidance in the range of 22%-24% for FY19 despite the positive impact of INR depreciation. We upgrade our earnings estimates by 1.4%/3.2% for FY20/FY21 mainly because of INR depreciation; our estimates remain same...

Infosys has delivered an in-line performance in 1QFY19, with its USD revenue rising by 0.9% QoQ (+2.3% QoQ in CC terms) to US$2,831mn (0.7% above our estimate) led by Retail (+6.4% QoQ in CC terms) and Energy (+5.3% QoQ). EBIT margin declined by 101bps QoQ, (83bps above our estimate) to 23.7% with favourable currency, higher utilisation and offshore mix offsetting the impact of wage hike, higher visa and subcontractor cost and business investments to a large extent. Looking ahead, the IT major maintained its guidance for FY19E with revenue growth pegged at 6-8% in CC terms, while EBIT margin is seen at 22-24%. Lack of an upward revision in margin guidance is disappointing, as EBIT margin came in close to the upper end of guided...

ICICI Securities Ltd | Retail Equity Research US$ revenues grew 0.9% QoQ to $2,831 million, largely in line with our 1.7% growth and $2,853 million estimate. Constant currency (CC) revenues grew 2.3% QoQ vs. our estimate of 2.5% QoQ. Rupee...

Even as export growth accelerated for the 3rd straight month, trade deficit widened to a 61-month high at US$ 16.6bn in Jun'18 due to higher oil (56.6%) and non-oil-non-gold imports (12.5% in Jun'18). Both are expected to remain elevated in the near-term. Hence, trade deficit will be higher in FY19. Higher trade deficit along with FPI outflows would put pressure on CAD and INR. INR has depreciated by 7.7% in CYTD18. However, a possible rate hike in...

Maintain BUY with TP of Rs 1,415, 18x FY20E-EPS. Infosys (INFY) delivered in-line rev and operating performance and recorded robust large deal bookings. Revenue came at USD 2,831mn, 0.9/6.8% QoQ/YoY based on 2.3/6.0% CC, and maintained its FY19 rev guidance of 6 to 8% CC YoY. EBIT% stood at 23.7%, -101bps QoQ impacted by wage increase of ~85% of employees, higher sub-contracting expense & G&A; spend (onsite expansion).

13 July 2018 guidance of 6-8% YoY was on expected lines, but marginally better considering a weaker exit in 4Q (0.6% CC) than we anticipated (1.5% CC), implying that the CQGR will be better if the guidance is met. growth guidance of 6-8% and EBIT margin band of 22-24% remain unchanged. However, on the margins front, we expect the company to come slightly investment budget for the year, and [2] 1Q is seasonally the weakest for margins and INFO is already close to the higher end of the band. However, while US BFS saw large deal wins, Europe BFS turned soft, keeping our expectations modest for now. Although it looks like INFO will achieve the lower end of its guidance in FY19, we continue to reckon the margin band is conservative, with the share of Digital inching up, recent INR depreciation, and investments already defined internally.

Large deal TCV saw a decent qoq rise to US$1.1bn v/s US$0.9bn in Q4FY18. However, we believe that the number is still small relative to its size and TCS' large deal wins (Infosys book to bill at 0.4 v/s ~1.0 for TCS). For the first time ever, Infosys is choosing growth over profitability, but frequent change in CEO/strategy would not translate into growth revival soon Stability' scenario to stay and Momentum and Accelerate' phase will take time. Maintain our SELL rating with a...

Infosys (INFO) reported a modest 2.3% QoQ constant currency revenue growth in 1QFY19; the operational construct 2.6% QoQ volume growth in services (highest in the last 10 quarters) and USD 1.1bn large deal wins (highest in the last 7 quarters) lends comfort on the outlook. Management commentary was optimistic on pick-up of project activity in troubled verticals such as Retail and US Financial Services, and a healthy deal pipeline. The retention of EBIT margin guidance despite the INR depreciation could disappoint some, but we see that as prudent given the concurrent cross-currency headwind. INFO emphasised it is not linking its planned investments in capability build with the currency movement indicating...

According to IDC, global IT spending is expected to rise to USD 4.8 trillion in FY19 , with US accounting for approximately USD 1.5 trillion of the market. As the US market is the major source of revenue for the company, we expect that the increased global IT spending will be positive for the company. Revenue from operations is estimated at Rs. 771.72bn and Rs. 841.92bn, respectively, in FY19 and FY20 as overseas revenues are expected to increase. PAT is estimated at Rs. 152.4bn and Rs. 165.8bn, respectively, in FY19 and FY20. Lower PAT in FY19 is on account of USD 233mn tax, which the company expects to pay over the...

Mr Salil Parekh outlined company's three-year road-map viz., FY19 gain stability, FY20 build momentum and FY21 accelerate growth. We continue to believe that its Four-pillar strategy would enable Infosys to drive higher growth. We maintain our forecast and expect revenue growth to improve to 7.6%/9.6% (in CC) in FY19/20 from 5.8% in FY18. Our forecast factors FY18/19 revenue (US$)/EPS CAGR of 9.1%/6.7%. We maintain ACCUMULATE and TP of Rs1,232 based on 16x FY20E. Key Highlights and Investment Rationale...

We attended Infosys' analyst day, wherein the management detailed its four pillar strategy- 1) scaling agile digital business (current run rateUS$2.8 billion in revenue), energising the client's core technology landscape via AI & automation, reskilling its employees, and expanding localisation in markets like the US, Europe and Australia. Taking into account, the changes Infosys has undergone in last 12-24 months, it has outlined its strategy roadmap over three years. In the first year FY19stabilise the business, second year FY20- build momentum and in the third year FY21- accelerate growth. The execution towards the above strategy would be closely watched. We maintain our HOLD...

On its Analyst Day, INFO's new CEO Mr Salil Parekh shed more light on the four pillars of its strategic plan: [1] scaling agile digital, [2] energizing the core, [3] re-skilling people and [4] expanding localization of talent. INFO's well-articulated strategy in digital, sales, talent re-skilling and localization,coupled with the USD2.79b base of digital revenues, provides a good base to kick-off its next innings. With previous distractions behind, INFO's focus is back on execution. The company cited that FY19 will be a year of stabilization, FY20 a year of momentum building, and FY21 a year of acceleration. It, however, refrained from divulging any further details about the implications of this strategy on its absolute/relative financial performance.

Infosys Ltd.'s January-March quarter earnings matched estimates, but market is disappointed by the company's margin guidance. India's second largest IT firm Infosys reported a 28 per cent drop in sequential net profit at Rs 3,690 crore for the March quarter. It had reported a net profit of Rs 5,129...

Revenue grew by 2.26% to Rs. 15984.0 Cr in Q4FY18 when compared to the previous quarter. Infosys Ltd Q4FY18 results comment