Infosys - Q2FY21 Results - Angel Broking

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

"Infosys reported numbers which were ahead of street estimates. Company reported a 6.12% qoq growth in revenues to USD 3,312mn driven by digital which grew by 12.9% qoq. In rupee terms revenue grew by 3.8% qoq to ₹ 24,570 crore while gross profits grew by 10.5% qoq to ₹8,799 crore. Gross margins expanded by 217bps qoq to 35.8% despite rupee appreciation due to higher off-shoring and better utilization. Continued tight cost control in the form of reduced SG&A expenses led to a 268bps qoq expansion in operating margins to 25.35% while operating profits grew by 16.1% qoq to ₹6,228 crore. Net profit for the quarter grew by 14.5% qoq to ₹4,845 crore.

While the Q1FY21 numbers were significantly above street expectations on all counts, the company reported record new deal wins of USD 3.15bn for the quarter. The management has also increased their revenue growth guidance to 2-3% from 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 Q2FY21 numbers we expect earnings upgrades for FY2021 and FY2022."

Shares of INFOSYS LTD. was last trading in BSE at Rs.1136.1 as compared to the previous close of Rs. 1158. The total number of shares traded during the day was 712741 in over 23590 trades.

The stock hit an intraday high of Rs. 1164.7 and intraday low of 1130.35. The net turnover during the day was Rs. 816566074.

Source : Equity Bulls

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