INFOSYS - 1QFY21 Results - Angel Broking

Mr. Jyoti Roy, DVP Equity Strategist, Angel Broking Ltd

"Infosys reported numbers which were way ahead of street estimates. Company reported a 2.4% qoq degrowth in revenues to USD 3,121mn as compared to expectations of 4-5% degrowth. In rupee terms revenue grew by 1.7% qoq to Rs.23,665 crore while gross profits grew by 2.5% qoq to Rs.7,962 crore. Gross margins expanded by 26bps qoq to 33.6% while tight cost control in the form of reduced SG&A expenses led to a ~160bps qoq expansion in operating margins to 22.7% while operating profits grew by 8.9% qoq to Rs.5,365 crore. However net profit for the quarter degrew by 2.0% qoq to Rs.4,233 crore due to lower other income and higher tax rates during the quarter.

While the Q1FY21 numbers were significantly above street expectations on all counts, new deal wins also remained strong at USD 1.74bn for the quarter. The management has guided for 0-2% growth in constant currency terms for FY2021 which is a big positive and would go a long way in reaffirming the markets faith in the company. Post the Q1FY21 numbers we expect upgrades in FY2021 and FY2022 numbers."

Shares of INFOSYS LTD. was last trading in BSE at Rs.831.45 as compared to the previous close of Rs. 783.2. The total number of shares traded during the day was 1272970 in over 30111 trades.

The stock hit an intraday high of Rs. 848 and intraday low of 795.35. The net turnover during the day was Rs. 1056949561.

Source : Equity Bulls

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