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.
ICICI Securities Report
Infosys Ltd.’s management commentary on medium-term growth outlook sounded more cautious (versus in previous quarters).
Large deal signings ($2.1 billion) were a tad lower than street expectations.
Both revenue growth (12%-14% YoY, constant currency) and Ebit margin guidance (22%-24%) for FY22 were in line with consensus.
However, understanding the forex assumptions baked into margin guidance is the key -- could it be 21%-23% without the recent rupee depreciation?
Retention costs (absent over trailing twelve months) may become a key overhang on profitability as attrition jumped 520 basis points QoQ to 15.2%.
Both the quantum (Rs 92 billion) and mode of buyback were disappointing given the tax/signalling inefficiency associated with open market buybacks.
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