Infosys Q4 Review - FY22 Guidance Leaves Scope For An Upward Revision: Motilal Oswal
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Motilal Oswal Report
Infosys Ltd. reported Q4 FY21 constant currency U.S. dollar revenue growth of 2% QoQ, below our estimate of 3.1%, as a higher offshore revenue share (100 basis points) partially offset the strong volume growth of 4.6% QoQ.
Q4 FY21 Ebit margin declined 90 basis point QoQ, marginally below our estimate, due to a 130 basis point wage hike impact and higher subcontracting expenses (up 50 basis point QoQ, highest in the last five years), despite more offshoring and cost optimization.
In FY21, revenue (U.S. dollar)/Ebit/profit after tax grew 6.1%/30.7%/17.5%.
The management guided at FY22 dollar revenue growth/Ebit margin of 12- 14% CC YoY/22-24%.
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