Infosys Q4 Review - Momentum Intact, OPM Guidance Slightly Disappoints: Dolat Capital
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Dolat Capital Report
Infosys Ltd. reported a revenue growth of 2.0% QoQ in constant currency terms (our estimate 3.3%) lower due to off-shoring mix shift while volume growth was strong at 4.6% QoQ.
Operating profit margin stood at 24.5% (our estimate 24%) led by better utilization (82.2%) and lower than expected hike impact (130 basis points).
Announced dividend of Rs 15 and market buyback of Rs 9.2 billion.
Announced guidance for FY22 at 12%-14% in CC terms (in-line to consensus) and OPM guidance at 22-24% (FY21: OPM 24.5%) was a slight disappointment as they do not see much upside potential, citing gradual return of discretionary cost as reason for lower OPM Guidance.
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