Motilal Oswal: Infosys Q1 Shows Strong Surprise At Multiple Levels; Margin Reversion On Track  
A general view of the Infosys Ltd. campus is seen through a window inside Building 44 on the campus in Electronics City in Bangalore, India. (Photographer Vivek Prakash/Bloomberg)

Motilal Oswal: Infosys Q1 Shows Strong Surprise At Multiple Levels; Margin Reversion On Track  

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Infosys’ Q1 FY21 revenue and margin performance reflect its unparalleled resilience in navigating Covid-19-led disruption. Supply-side challenges were managed better than even TCS (10% impact for Infosys v/s 20% for TCS). Despite a higher variable payout (100 basis point impact), robust EBIT margin expansion over 150 basis point QoQ was a key positive.

We upgrade our FY21/FY22E earning per share estimates by 11% and 12% as we adjust our EBIT margin trajectory to the beat in Q1 FY21. Infosys should be a key beneficiary in terms of recovery in IT spends in FY22. Additionally, suboptimal EBIT margin levels and headroom for margin expansion, led by backended productivity benefits, should translate into strong outperformance on EPS growth.

Click on the attachment to read the full report:

Motilal Oswal Infosys Result Update.pdf


This report is authored by an external party. BloombergQuint 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 brokerage and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.