Infosys Q4 Results Review - Disappointment On All Counts; TCV Is The Only Silver Lining: ICICI Securities

ICICI Securities Report

Infosys Ltd.’s Q4 FY24 QoQ constant currency revenue growth was even below our muted estimate (of -1.2%). QoQ revenue growth and margin were impacted by:

1. one-off impact from banking, financial services and insurance deal renegotiation and

2. higher discretionary component in portfolio being impacted by weak client sentiment.

The revenue guidance of 1-3% constant currency for FY25 does not leave much room for optimism. Strong total contract of $4.4 billion is the only silver lining.

We Infosys at 22 times FY26E earnings per share of Rs 72 to arrive at our revised target price of Rs 1,570 (earlier target price: Rs 1610), implying ~10% potential upside.

We cut our FY25/26E EPS by 1-8% after factoring in Q4 print, In-tech acquisition and bleak outlook. Maintain Add.

Key risks: Slower-thananticipated recovery in discretionary IT spends and continued impact from one-offs.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.