Infosys Q2 Review - Growth Beat Drives Guidance Upgrade, Attrition, TCV Not Encouraging: Dolat Capital
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Dolat Capital Report
Infosys Ltd. reported a revenue growth of 6.3% QoQ in constant currency terms (our estimate: 5%) led by strong execution and rampup of the Daimler deal.
Operating profit margin were down just 12 basis points QoQ at 23.6% (our estimate: 22.4%) despite wage hike as it gained 130 bps on cost optimisation and also made hikes effective for senior/title holders as of October 2021 (will impact Q3).
Infosys' strong Q2 performance has led to upgrade in growth guidance for FY22 by 150 bps on top end to 16.5-17.5% in constant currency terms while operating profit margin guidance band has been kept unchanged at 22-24%.
Signed total contract value of $2.15 billion taking trailing twelve months TCV to $14 billion up 67% YoY.
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