Infosys - Q3FY22 Result Update - First cut - YES SECURITIES

Mr. Piyush Pandey, Lead Analyst - Institutional Equities, YES SECURITIES

• Infosys Q3FY22 Result First cut- Revenue significantly above estimate; EBIT margin flatish QoQ( slightly below estimate on higher employees cost)
• Reported revenue of Rs 318.7bn( up 7.7% QoQ in INR terms, up 6.3% QoQ in USD terms). It was broadbased growth with higher uptick in manufacturing and Life science vertical.
• Digital revenue grew 41.2% YoY in USD terms, while core( legacy business was flat YoY). Digital now contributes 58.5% of revenue compared to 56.1% in Q2FY22.
• EBIT margin was down 10 bps QoQ at 23.5% as positive impact from higher revenue growth got negated by 8.3% QoQ growth in direct costs.
• Deal booking remained strong as it signed large deals of $2.53 bn vs $2.15 QoQ.
• Added 111 clients during Q3FY22 compared to 117 during Q2FY22.
• Total headcount increased by ~12,400 QoQ to 2,92,067.
• LTM attrition increased by 540 bps QoQ to 25.5%, signifying higher demand for talent in the industry
• Utilisation was down 70 bps QoQ, to 88.5% on account of seasonality.
• *It has increased revenue growth guidance for FY22 to 19.5% -20% from 16.5%- 17.5% in CC terms.*
• Overall, strong revenue growth in the quarter along with robust deal booking but the sharp spike in attrition is matter of concern. We currently have BUY Rating on the stock.

Shares of Infosys Limited was last trading in BSE at Rs. 1877.60 as compared to the previous close of Rs. 1856.05. The total number of shares traded during the day was 293646 in over 17694 trades.

The stock hit an intraday high of Rs. 1889.00 and intraday low of 1860.60. The net turnover during the day was Rs. 550530699.00.

Source : Equity Bulls

Keywords

Infosys INE009A01021 INFY Q3FY22 ResultUpdate FirstCut YESSecurities