Views on Infosys Limited Q2FY2018 Results: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research - IT, Angel Broking):

"Infosys, announced numbers for 2QFY2018, on sales the company posted 2.9% sequential growth in USD revenues to US$2,728mn V/s US$2,755mn expected. In Constant currency terms (CC) the company posted a 2.2% QoQ growth. Volume growth during the quarter was 1.6% QoQ. In rupee terms, revenues came in at INR 17,564cr V/s INR 17,604cr, up 2.9% QoQ growth.

In terms of the Industries, FSI posted CC QoQ growth of 2.6%, MFG & Hi-Tech grew by 1.2% QoQ CC, RCL grew by 1.7% QoQ CC and ECS grew by 3.0% QoQ CC. In terms of geography, the USA grew by 1.9% QoQ CC, Europe grew by 4.1% CC QoQ, and India grew by 5.1% QoQ CC while ROW grew by 2.3% QoQ CC.

EBIT margin came in at 24.2% v/s 23.6% expected, mainly driven by improved utilization levels (which came in at 84.7% V/s 84.0% in 1QFY2018. Consequently, PAT came in at INR 3,726cr V/s INR 3,590cr expected, a rise of 7.0% QoQ.

FY2018 revenue guidance has been revised to 5.5%-6.5% in constant currency. Operating margin guidance unchanged at 23%-25%

We maintain our BUY rating on the stock with a target price to be revised soon."

Shares of INFOSYS LTD. was last trading in BSE at Rs.947.45 as compared to the previous close of Rs. 947.5. The total number of shares traded during the day was 399399 in over 10844 trades.

The stock hit an intraday high of Rs. 957.05 and intraday low of 945. The net turnover during the day was Rs. 379121120.

Source : Equity Bulls

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