Buy Infosys, Expect Better EBIT Margins In Q4FY18: Akash Jain
"We would go long ahead of Infosys Q4FY18 result as we expect the company to witness an improvement in earnings before interest and taxes (EBIT) margins in Q4FY18 owing to currency, operational efficiency and automation," says Akash Jain, Vice-president, Equity Research at Ajcon Global Services.
Apr 11, 2018 / 03:14 PM IST
Akash JainVice-president, Equity Research
Ajcon Global Services
We would go long ahead of Infosys Q4FY18 result as we expect the company to witness an improvement in earnings before interest and taxes (EBIT) margins in Q4FY18 owing to currency, operational efficiency and automation. We expect revenue guidance can be in the range of 5-7 percent Y-o-Y constant currency growth for FY19.
The key things to watch out in Q4FY18 Infosys result would be management’s outlook on FY19E revenue guidance, along with sustainable margin trends which we think would be above street expectations.
Over the last few quarters, the company has clocked better profitability owing to higher utilisation. We expect OPMs to rise in the range of 20-30 bps. The Company’s new CEOs outlook for long term, possible deal wins in future, CEOs commentary on strategy to mitigate risks of US tax code would act as a key trigger to stock prices.Disclaimer
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