Infosys Q2 Review - Strong All-Round Beat, Guidance Revision Above Our Expectation: Motilal Oswal
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Motilal Oswal Report
Infosys Ltd. reported a growth of 6.3% QoQ constant currency, ahead of our estimate of 5.7%, on the back of a broad based performance.
Large deal total contract value of $2.15 billion was a tad soft (net new at 37%).
However, Infosys' management indicated good traction in medium and small size deals, and reiterated that the pipeline remains strong on robust demand.
Ebit margin dipped 10 basis point QoQ to 23.6%, above our estimate of 22.3%, despite the impact of higher subcontracting expenses and wage hike in Q2 FY22.
Utilisation (up 70 basis point QoQ) and offshore mix (up 50 basis point) remains stretched, despite strong hiring in Q2 FY22.
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