BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Infosys Ltd. reported strong broad based growth of 4.8% QoQ constant currency, beating our estimate of 3.9%.
Deal total contract stood at $2.6 billion, implying a growth of 48% YoY. While net new deal wins were relatively lower at 30%, the deal pipeline remains strong given the robust demand environment.
Infosys' Ebit margin fell 80 basis point QoQ to 23.7% in Q1 FY22 (estimate 24.8%), due to a 50 bps/80 bps impact from higher subcontracting expenses (highest in the last five years)/employee cost (on retention/hiring and promotions).
This was partially offset by a 40 bps/10 bps impact from utilisation/currency. Utilisations and offshore mix remain stretched, indicating a strong demand environment.
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