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:

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
Chhota (to) Mota Ideas Update: Venky's India Ltd - SELL - TP Rs.3700 - Kotak
Company Update: Moil Ltd - BUY - TP Rs.260 - Kotak
Bhansali Engineering Polymers Ltd - Buy - HEM Securities
Company Update: Kansai Nerolac Paints Ltd - BUY - TP Rs.600 - Kotak
GMM Pfaudler Limited - Initiating Coverage - Angel Broking
Event Update: Motherson Sumi Systems Ltd - ACCUMULATE - TP Rs.348 - Kotak
Company Update: Bodal Chemicals Ltd - REDUCE - TP Rs.140 - Kotak
Telecom: Dec 2017 marks a new low on wireless-spend-to-GDP ratio - Kotak
Company Update: Engineers India Ltd - BUY - TP Rs.204 - Kotak
Company Update: Venky's India Ltd - ACCUMULATE - TP Rs.4600 - Kotak
Company Update: NBCC (India) Ltd - BUY - TP Rs.229 - Kotak
Company Update: Petronet LNG Ltd - BUY - TP Rs.276 - Kotak
India Inc. has INR 1.8 lakh crore of cash trapped in their balance sheets: EY Report
Company Update: KNR Constructions Ltd - BUY - TP Rs.348 - Kotak
Akzo Nobel India Ltd - Initiating Coverage - Kotak Securities
Greenply Industries - Initiating Coverage - Angel Broking
Growth of India's apparel exports contingent upon overcoming internal and external headwinds: ICRA
Management Meet Update: Kansai Nerolac Paints Ltd - BUY - TP Rs.600 - Kotak
Ajanta Pharma - Initiating Coverage - Arihant Capital Markets
Result Update: Indo Count Industries Ltd - BUY - TP Rs.135 - Kotak
Arihant Capital Markets - Ambuja Cement 4QCY17 Result Update - HOLD
Result Update: Bodal Chemicals Ltd - ACCUMULATE - TP Rs.164 - Kotak
Result Update: Mahindra & Mahindra - BUY - TP Rs.864 - Kotak
Result Update: The India Cements Ltd - BUY - TP Rs.195 - Kotak
Result Update: Sun TV Network Ltd - REDUCE - TP Rs.994 - Kotak
Result Update: Voltas Ltd - ACCUMULATE - TP Rs.648 - Kotak
Result Update: Oil India Ltd - ACCUMULATE - TP Rs.392 - Kotak
Result Update: Petronet LNG Ltd - BUY - TP Rs.285 - Kotak
Result Update: Carborundum Universal Ltd - BUY - TP Rs.418 - Kotak
Proposed opening of coal sector to private players: Angel Broking
Result Update: Vascon Engineers Ltd (VEL) - BUY - TP Rs.57 - Kotak
Initiating Coverage: HSIL Ltd - Angel Broking
Result Update: The Phoenix Mills Ltd - BUY - TP Rs.672 - Kotak
Result Update: Time Technoplast Ltd - BUY - TP Rs.214 - Kotak
Result Update: Shipping Corporation of India - BUY - TP Rs.110 - Kotak
Result Update: PNC Infratech Ltd - BUY - TP Rs.208 - Kotak
Result Update: KNR Constructions Ltd - ACCUMULATE - TP Rs.348 - Kotak
Result Update: NBCC (India) Ltd - ACCUMULATE - TP Rs.229 - Kotak
Result Update: Jindal Stainless Hisar Ltd - BUY - TP Rs.318 - Kotak
Result Update: NMDC Ltd - SELL - TP Rs.130 - Kotak
Result Update: Talbros Automotive Ltd - BUY - TP Rs.389 - Kotak
Result Update: Sterling Tools Ltd - ACCUMULATE - TP Rs.428 - Kotak
Result Update: FIEM Industries Ltd - BUY - TP Rs.1203 - Kotak


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

disclaimer copyright © 2005 - 2018