Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
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:

Amber Enterprises India Ltd - Initiating Coverage - Angel Broking

Initiating Coverage on Bata India - Better brands for better growth - Angel Broking

IMP Powers' successful foray in renewable energy

Parag Milk Foods 4QFY2018 Result Update - Angel Broking

GMM Pfaudler Limited 4QFY2018 Result Update - Angel Broking

Result Update: Gabriel India Ltd - BUY - TP Rs.193 - Kotak

Result Update: Apollo Tyres - ACCUMULATE - TP Rs.300 - Kotak

Result Update: Havells India Ltd - SELL - TP Rs.500 - Kotak

Result Update: Chennai Petroleum Corporation Ltd - BUY - TP Rs.373 - Kotak

Result Update: Shankara Building Products Ltd - ACCUMULATE - TP Rs.2017 - Kotak

Result Update: Sun TV Network Ltd - ACCUMULATE - TP Rs.964 - Kotak

Result Update: Akzo Nobel India Ltd - BUY - TP Rs.2150 - Kotak

Syndicate Bank Q4 loss widens to Rs. 2195.12 crores

Result Update: Mahindra Holidays & Resorts India Ltd - BUY - TP Rs.390 - Kotak

Result Update: The Phoenix Mills Ltd - ACCUMULATE - TP Rs.676 - Kotak

Result Update: Blue Dart Express Ltd - BUY - TP Rs.4050 - Kotak

Result Update: Zee Entertainment Enterprises Ltd - ACCUMULATE - TP Rs.623 - Kotak

Result Update: Asian Paints Ltd - ACCUMULATE - TP Rs.1320 - Kotak

Result Update: Voltamp Ltd - BUY - TP Rs.1349 - Kotak

Result Update: Kajaria Ceramics Ltd - BUY - TP Rs.648 - Kotak

India's original E-Commerce Poster Boy sells out to Wal-Mart: Angel Broking

Result Update: Carborundum Universal Ltd - BUY - TP Rs.420 - Kotak

Result Update: Indocount Industries Ltd - BUY - TP Rs.103 - Kotak

Result Update: GE Shipping Company - SELL - TP Rs.350 - Kotak

Technology: CTSH results: on balance negative

Result Update: Greaves Cotton Ltd - BUY - TP Rs.153 - Kotak

Result Update: NIIT Technologies Ltd - ACCUMULATE - TP Rs.1083 - Kotak

Result Update: IRB Infrastructure Developers Ltd - ACCUMULATE - TP Rs.292 - Kotak

Result Update: Venky's India Ltd - REDUCE - TP Rs.3750 - Kotak

Result Update: Castrol India Ltd - BUY - TP Rs.213 - Kotak

Result Update: Radico Khaitan - ACCUMULATE - TP Rs.421 - Kotak

Q4 FY18 Result Update: Marico Ltd - ACCUMULATE - TP Rs.334 - Kotak

Q4 FY18 Result Update: Adani Port and SEZ - BUY - TP Rs.485 - Kotak

Q4 FY18 Result Update: Kansai Nerolac Paints Ltd - BUY - TP Rs.600 - Kotak

Q4 FY18 Result Update: Hero MotoCorp - BUY - TP Rs.4553 - Kotak

Q4 FY18 Result Update: Hindustan Zinc - REDUCE - TP Rs.318 - Kotak

Q4 FY18 Result Update: Container Corporation of India - BUY - TP Rs.1550 - Kotak

Q4 Result Update: Jindal Stainless Hisar Ltd - BUY - TP Rs.318 - Kotak

Ultratech Cement - Q4FY18 Result Update - Arihant Capital Markets Ltd

Company Update: Va Tech Wabag Ltd - BUY - TP Rs.672 - Kotak

K P Energy Ltd ties up for development of 300 MW wind power project

Matrimony.com Ltd - Initiating Coverage - Angel Broking

ACC Ltd Q1CY18 Result Update Rating - ACCUMULATE - Arihant Capital Markets

Company Update: Cummins India Ltd - BUY - TP Rs.862 - Kotak

FY18 Result Update: Tata Sponge Iron Ltd - REDUCE - TP Rs.1172 - Kotak

National highways: utilization and monetization - Kotak

Initiating Coverage: Parag Milk Foods Limited - Angel Broking

Company Update: NALCO - BUY - TP Rs.100 - Kotak

Company Update: Chennai Petroleum Corporation Ltd - BUY - TP Rs.390 - Kotak

Company Visit Note: Genus Power Infrastructure Ltd - BUY - TP Rs.79 - Kotak



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

disclaimer copyright © 2005 - 2018