Infosys India’s second largest software services firm reported 13.8% sequential growth in the 2nd quarter on a net profit of Rs. 4,110 crore, while sequentially revenue grew by 7.7% to Rs. 20,609 crore, compared to Rs. 19,128 crore in the previous quarter.

Revenue showed a healthy growth rate of 17.3% on a year on year basis.

The firm has maintained the report of constant current terms in which it has reported 6-8% and EBIT margin at 22-24%.

Infosys also said it signed $2 billion worth of deals during the quarter. Infosys added 73 clients in Q2FY19 versus 70 in Q1FY19. The total no. of active clients stood at 1,222(1,214 in QFY19).

Large deal wins were strong at $2 billion. The global investment bank believes that Infosys deserves to trade at a 20% discount to TCS.

Edelweiss maintains its outperform rating on Infosys but revised its target price to Rs 880 from Rs 824 earlier.

Infosys reported broad-based revenue growth with North America, Europe and RoW growing by 3.8 %, 4 %, and 6.8 % QoQ cc while Financial Services, Retail, and Manufacturing rose by 5.8 %, 5.9 % and 4.8 % QoQ cc.

Life Sciences and Communication, up 0.7 % and 1.2 % QoQ cc were relatively weak. Products & Platforms shot up by 9.5 % QoQ cc while Services grow by 3.9 % QoQ cc.

The firm is Edelweiss Securities Ltd top pick based on strong deal-win momentum—USD2bn which is highest ever, digital-focused strategy, which is in place and would drive 35 % segmental growth undemanding valuation (15.8x FY20E EPS), and a high dividend yield of 4.7 %. The brokerage firms are of the view that the sector seems to be turning around and Infosys will be a key advantageous.

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