Views on Infosys Ltd 3QFY2017 Results: Angel Broking

Ms. Sarabjit Kour Nangra (VP Research- IT, Angel Broking) on Infosys Ltd 3QFY2017 Results:

"Infosys, posted results better than expected on the EBIT and net profit front. The company, posted a 1.4% sequential de-growth in USD revenues to US$2,551mn V/s US$2,561mn expected. On Constant currency terms, de-growth was 0.3%, the volume growth during the quarter was 0.2% QoQ. In rupee terms, revenues came in at INR 17,273cr V/s INR 17,275cr expected, down 0.2% QoQ. In terms, of Industry, the FSI was only segment which grew by 0.2% QoQ on CC terms, while rest of the verticals took a dip. MFG & Hi-Tech, RCL and ECS posted a QoQ dip of 0.5%, 0.4% and 0.8% on CC terms respectively. In terms of Geography, USA dipped by 0.6% QoQ on CC basis, Europe grew by 1.0% QoQ on CC basis, India dipped by 0.1% QoQ on CC basis, while ROW dipped by 1.5% QoQ on CC basis. In terms, of client addition, the company added 2 clients in the US$75mn+ and 1 in US$25mn+. In terms of Employee utilization, including trainees, the utilization was 77.8% V/s 77.7% in 2QFY2017. Attrition rate came down to 14.9% V/s 15.7% in 2QFY2017. On EBIT front, the company posted an EBIT of 25.1% V/s 24.5% expected, up 20bps QoQ. Consequently, PAT, came in at INR 3,708cr V/s INR 3,569cr expected growth of 2.8% QoQ. On guidance front, FY2017 revenue guidance revised to 8.4% - 8.8% from 8.0% - 9.0% in constant currency. We maintain our BUY rating on the stock, with a price target of INR 1,249."

Shares of INFOSYS LTD. was last trading in BSE at Rs.955.7 as compared to the previous close of Rs. 975.15. The total number of shares traded during the day was 274905 in over 10340 trades.

The stock hit an intraday high of Rs. 965.5 and intraday low of 952.5. The net turnover during the day was Rs. 263644215.

Source : Equity Bulls

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