Sharekhan's research report on Infosys
Revenue missed, but OPM remained slightly ahead of estimates. Large deal TCVs moderated after two quarters of strong deal wins. FCF conversion continued to improve. Management has guided for revenue growth of 12%-14% y-o-y on CC basis and EBIT margin at 22%-24% in FY2022E, which were in-line with our expectations. Infosys’ board has approved the buyback programme of Rs. 9,200 crore (excluding the tax component) through the open market route at a price not exceeding Rs. 1,750/share. Final dividend stood at Rs.15/share, taking total FY2021 DPS at Rs. 27/share.
We maintain Buy on Infosys with an unchanged PT of Rs. 1,650, as it is expected to outpace large peers in terms of revenue growth over the next couple of years.
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