Infosys Q1 Review - Expect Further Upward Revision In Guidance: Motilal Oswal
A view of the Infosys campus. (Photographer: Vijay Sartape/BloombergQuint)

Infosys Q1 Review - Expect Further Upward Revision In Guidance: Motilal Oswal

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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:

Motilal Oswal Infosys Q1FY22 Result Update.pdf


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