Infosys Q4 Results Review - Unexpected Pain Continues, Miss Guidance Again, FY25 To Be Muted: Dolat Capital

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.Infosys Ltd. reported constant currency revenue decline of 2.2% QoQ (below our estimate of +0.1%), due to rescoping of contract impacting 100 basis points. Operating profit margin stood at 20.1% down 40 basis points QoQ (our estimate: 20.7%) led by-one-time re-negotiation contract (-100 bps),wage hike and Visa costs (-80 bps) partially offset by lower provision (+40 bps), Project Maximus (+40 bps) andreversal of cyber incident (40 plus bps)..Infosys guided CC revenue growth of 1-3% for FY25E (FY24: 1.4%) excluding revenue contribution from in-Tech acquisition (100 bps) and expects better H1 growth over H2. OPM guidance stood at 20-22% (FY24: 20.7%). We tweak our FY25/FY26E earnings per share estimates by -0.6%/-1.9% to factor continued stress in client spends. Despite record mega deal wins, uncertain discretionary spending in near term may impact business performance. Maintain ‘Reduce’ rating with target price of Rs 1,470 (valued at 21 times FY26E)..Click on the attachment to read the full report:.Infosys Q4 Results Review - Modest FY25 Guidance To Weigh On Near-Term Returns: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Infosys Q4 Results Review - Unexpected Pain Continues, Miss Guidance Again, FY25 To Be Muted: Dolat Capital

BFSI continues to drag; key segments and geography remained weak

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