Infosys Q1 Review - FY23E Margins Will Rhyme With That Of FY20: ICICI Securities

Infosys Ltd. signage is displayed at the entrance to a building at the company’s campus in Electronics City in Bangalore. (Photographer: Vivek Prakash/Bloomberg).

Infosys Q1 Review - FY23E Margins Will Rhyme With That Of FY20: ICICI Securities

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. has been one of the very few companies in the industry reporting an actual improvement in the underlying demand and not a mere cyclical recovery from a low base.

Its consistent performance has continued with organic growth of 4.8% QoQ (constant currency) the company’s best-ever June quarter in more than a decade.

Quality of growth was healthy and broad-based across verticals and geographies.

Margins disappointed (by 90 basis points, versus consensus) due to rise in attrition (~300bps QoQ to ~14%, last twelve months), retention and subcontracting costs.

Large deal total contract value ($2.6 billion) remained in line with rolling historical averages, although the skew is towards renewals (70%).

Click on the attachment to read the full report:

ICICI Securities Infosys Q1FY22 Results Update.pdf

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