Infosys Q1 Review - Expect Further Upward Revision In Guidance: Motilal Oswal
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 value 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.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint 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 BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.