Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
Union Budget
Budget 2011-2012 Home
Industry Expectations - Budget 2011-2012
Industry Reactions - Budget 2011-2012
Budget 2010-2011
Budget 2010-2011 Home
Industry Expectations - Budget 2010-2011
Industry Reactions - Budget 2010-2011
Contributor's Corner
Bonanza Portfolio
Hemant K Gupta
Krish Bhatt
S A A R T H I
Trinity Investments
Exchange Information
BSE 2009 Holidays
NSE 2009 Holidays
Investor Guide
Depository & Dematerialisation
Grievance Redressal
Investor Guide
SEBI
Trading of Securities
Transfer of Securities
Your Rights
Budget 2009-2010
Budget 2009-2010 Home
Industry Expectations - Budget 2009-2010
Industry Reactions - Budget 2009-2010
Interim Budget 2009-2010 Home
Industry Expectations - Interim Budget 2009
Budget 2008-2009
Railway Budget 2008-2009
Industry Expectations - Budget 2008
Union Budget 2008-2009
Highlights of Budget 2008-2009
Summary of Budget 2008-2009
Industry Reactions - Budget 2008
IPOs
Current IPOs
Past IPOs
IPO Subscription
Mutual Funds
Gold Exchange Traded Fund
MF Unique Holding
Forthcoming Dividends
ELSS Schemes Comparison
Tax Plans
New Fund Offers
Research
Arbitrages
Equity
Market Whispers
Tax Planning
Home
Equity Linked Savings Scheme
Post Office MIS
9% GOI Senior Citizens Savings Scheme
8% Savings (Taxable) Bonds
Kisan Vikas Patra
National Savings Certificate
Public Provident Fund
Research

| More

Infosys (INFO IN) - Result in-line with street expectation; guidance disappoints - Cholamandalam Securities

Posted On: 2016-10-16 08:05:24

In 2QFY17, Infosys consolidated revenue grew (+10.7% YoY & +3.1% QoQ) to INR 173.1bn. In dollar terms, Revenue grew (+8.2% YoY & +3.5%QoQ) to USD 2,587mn. In CC terms, revenue grew by 3.9% QoQ & 8.9% YoY. Blended volume grew by 4.4% during the quarter (+3.1% onsite & +4.4% offshore), while realization declined by 40bps QoQ. Infosys lowered CC revenue growth guidance to 8%-9% from earlier guidance of 10.5%-12% for FY17 anticipation of weaker discretionary spending and volatile macro environment; the cut in revenue guidance was way ahead of street expectation.

EBITDA margin rose by 80 bps QoQ to 27.3% led by lower visa cost and operational efficiency. EBIT margin stood at 24.9% (+78 bps QoQ). Management has reduced the upper band of the EBIT margin guidance by 100 bps for FY17 to 25%. APAT declined ~5% QoQ to INR 35.1bn in 2QFY17 on account of higher tax and lower other income during the quarter.

All geography posted growth during the quarter. India Business recorded highest growth of 28.7% QoQ in CC term, followed by RoW (+5.2% QoQ), Europe (3.7% QoQ) and North America (2.7% QoQ). Amongst Industry segment, ECS grew by 7.3% QoQ, FSI segment grew by +5.2% QoQ amidst challenging demand environment , MFG & Hi-Tech (+2.1% QoQ) and RCL (+1.2% QoQ) in CC term, while retail CPG declined marginally.

Valuation: At CMP the stock is trading at a P/E multiple of 16.2XFY17E and 14.6XFY18E, which is 5 years and 10 years below historical average. We believe at CMP the stock has discounted near term challenging demand environment. Given the healthy deal wins we maintain the stock a BUY rating with revised target price of INR 1,196 by assigning P/E multiple of 17XFY18E EPS ( based on consensus estimate).

Risks: lower discretionary spend, INR appreciation are key risks.

Shares of INFOSYS LTD. was last trading in BSE at Rs.1052.05 as compared to the previous close of Rs. 1029.55. The total number of shares traded during the day was 350894 in over 9471 trades.

The stock hit an intraday high of Rs. 1057.5 and intraday low of 1024.55. The net turnover during the day was Rs. 367726394.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com


Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.





Other Headlines:

Shankara Building Products Ltd - IPO Note - Sushil Finance
'R' for RERA - for Realty coming to Reality soon: Angel Broking
Reliance Capital - Refurbishing core; monetisation crucial; company update; Buy - Edelweiss
D-Mart delights its investors: Angel Broking
Shankara Building Products Limited - Thrust on retail to boost potential: Angel Broking
Impact of Rupee Strength on IT and Pharma: Angel Broking
Idea Surges 12% on the back of positive news flows: Angel Broking
Sun Pharmaceutical - USFDA to Lift Import Alert Regulator to permit supply of products from Mohali: Angel Broking
IT Update - Ban on premium processing of H1-B visas: Angel Broking
Tech Mahindra - Acquires CJS Solutions in US: Angel Broking
Dr. Reddy's Laboratories - Gets USFDA observation for Duvvada oncology formulation Facility: Angel Broking
VIP Industries - Travelling smart on the luggage track: Angel Broking
Avenue Supermarts - IPO Note - Numero Uno! - Reliance Securities
IT Update: Ban on premium processing of H1-B visas: Angel Broking
DATA WARS BEGIN... AND THE WINNER IS: THE DATA CONSUMER: Angel Broking
Auto sector shifting gears, Feb volumes indicate fast recovery in sight: Angel Broking
Alembic Pharmaceutical launches Desvenlafaxine in US: Angel Broking
Sugar prices trading in tight range, may rise further on tight supplies: Angel Broking
REPCO Home Finance - Reaping the benefits of serving the underserved: Angel Broking
Cement Sector - Monthly Update - Prices Inch-Up on Moderate Demand Recovery - Reliance Securities
Music Broadcast Limited is playing the growth tune: Angel Broking
Technical View on Crude Oil - Target - $ 56 to $ 58 , (CMP - 3640 / $ 54.35): Angel Broking
Ambuja Cements - 4QCY16 Result Update - Better Operating Performance on Higher Realizations - Reliance Securities
Cement - 3QFY17 Results Review - A Quiet Quarter - Impacted by Cash Crunch - Reliance Securities
Britannia Industries - Initiating Coverage - Betting on Premiumization, Distribution and Cost optimization - Reliance Securities
Srikalahasthi Pipes - Initiating Coverage - Piping Gains - Reliance Securities
NCC - Initiating Coverage - A Solid Play in Infrastructure Pickup - Reliance Securities
TCS Buyback - Update - Angel Broking
Nestle India - 4QCY16 Result Update - Better Times Awaited; Maintain REDUCE - Reliance Securities
Kalpataru Power Transmission - 3QFY17 Result Update - Growth Momentum Continues; Strong Order Book Offers High Revenue Visibility - Reliance Securities
NALCO - 3QFY17 Result Update - Strong Performance on Higher Volume, Realizations - Reliance Securities
Further Re-rating of HDFC Bank to come from Core earnings growth: Angel Broking
Cadila Healthcare - no 483 For Moraiya plant: Angel Broking
GlaxoSmithKline Consumer - 3QFY17 Result Update - Weak Demand Accentuated by Demonetization - Reliance Securities
MOIL - 3QFY17 Result Update - Stellar Performance to Continue; Upgrade to BUY - Reliance Securities
Techno Electric & Engineering - 3QFY17 Result Update - Strong Quarter; Order Pipeline Remains Robust - Reliance Securities
J. Kumar Infraprojects - 3QFY17 Result Update - Decent Performance on Execution Ramp-up - Reliance Securities
Views on Sun Pharmaceutical Industries Limited 3QFY2017 Results: Angel Broking
All the queries put to rest at Infosys Press Conference: Angel Broking
Hindustan Zinc - 3QFY17 Result Update - Higher Zinc Prices Aid Earnings, but Valuation Expensive; Reiterate REDUCE - Reliance Securities
Mangalam Cement - 3QFY17 Result Update - Robust Volume Growth Aids Performance - Reliance Securities
Power Grid Corporation - 3QFY17 Result Update - Higher Capitalization Continues to Drive Growth - Reliance Securities
HeidelbergCement - 3QFY17 Result Update - A Quiet Quarter; Expect Improvement Ahead - Reliance Securities
Bank of Baroda - 3QFY17 Result Update - Asset Quality Pressure Continues to Persist; Downgrade to HOLD - Reliance Securities
Steel Authority of India - 3QFY17 Result Update - Higher Raw Material Cost & Lower Volume Dent Margins - Reliance Securities
Hindalco - 3QFY17 Result Update - Strong Performance Continues; Valuation Pricey - Reliance Securities
KNR Constructions - 3QFY17 Result Update - Beats Estimates on Better Execution - Reliance Securities
Ahluwalia Contracts - 3QFY17 Result Update - Strong Performance on All Parameters - Reliance Securities
NBCC - 3QFY17 Result Update - Better Operating Performance; Prospect Remains Bright - Reliance Securities
Goodluck India - 3QFY17 Result Update - Subdued Quarter; Better Times Expected as Input Prices Stabilize - Reliance Securities


Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2017