Dolat Capital Market's research report on Infosys
Infosys reported a revenue growth of 5.3% QoQ in CC terms (DE 3.8%) due to strong execution across verticals and a 5bps QoQ OPM improvement to 25.4% (DE 24%) led by better utilization and offshore shift (about 100bps), Fx (20bps) that covered up for headwinds. Strong Q3 also led to upgrade in growth guidance for FY21 to 4.5%-5% in CC terms (up 200bps) and OPM guidance to 24-24.5% (from 23-24%). OPM upgrade came as bigger surprise given expected headwinds in terms of Jr. employee promotions, large deal transitioning etc. in Q3. Signed best ever TCV of $7.1Bn (73% of this is New) taking TTM TCV to $13.6Bn up 53% on YoY basis. Pipeline remains strong as clients are focusing on digital transformation, cost take-outs and captive monetization and so on.
Outlook
Factoring strong performance, robust TCV wins, confident commentary and upgrade in guidance/outlook, we have upgraded our growth estimates by ~1.5% CAGR FY21-23E and have assigned Accumulate view on stock with TP of Rs. 1,500 (27x on FY23E EPS).
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!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
Read More
