Motilal Oswal's research report on Infosys
Infosys (INFO) reported 2QFY25 revenue of USD4.9b, growth of 3.1% QoQ/3.3% YoY CC vs. our estimate of 3.0% QoQ CC. EBIT margins stood at 21.1% vs. our estimates of 20.3%. EBIT grew 4.4% QoQ/4.5% YoY to INR86b (est. INR83b). PAT came in at INR65b, up 2.2% QoQ/4.7% YoY, in line with our estimate of INR66b. FY25 revenue growth guidance upgraded from 3-4% to 3.75%-4.5%. For 1HFY25, revenue/EBIT/PAT grew 4.4%/4.8%/5.9% compared to 1HFY24. We expect revenue/EBIT/PAT to grow by 8.1%/8.8%/10.4% YoY in 2HFY25. INFO reported a deal TCV of USD2.4b, down 41.5% QoQ and 68.8% YoY.
Outlook
We expect INFO to be a key beneficiary of the acceleration in IT spends in the medium term. We value INFO at 28x Sep’26 EPS. This yields a rounded TP of INR2,200, implying a 12% upside. We reiterate our BUY rating.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
