Infosys | Market Cap: Rs. 6,46,400 Cr
CMP 1,547 | P/E 27x FY23
Results |
INR Cr. |
Y-o-Y Growth |
Comments |
Revenue |
38,318 |
20.2% |
Digital revenues at 62.9% of total revenues, YoY CC growth of 21.7% |
EBIT |
10,136 |
13.9% |
Operating margin at 21.5%, decline of 2.0% YoY and stable QoQ |
PAT |
6,586 |
13.1% |
Net Margin came in at 17.2% from 18.3% (Y-o-Y) |
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Key highlights:
·Growth in financial services was impacted due to a higher-than-nominal furloughs. However, pipelines continue to be strong and oriented towards cost takeout and tech of transformation.
·Strongest large deal wins in the last 8 quarters, TCV at $3.3 billion. Region-wise, this was by 25 in the Americas, 5 in Europe and 2 in the rest of the world.
·Quarterly attrition reduced further by another 6% during the quarter. Consequently, LTM attrition reduced to 24.3% as compared to 27.1% in Q2. The management of the company expects further reduction in the attrition rate in the upcoming quarters.
Management Outlook:
·Weaknesses in global macro environment are clearly visible as EU is more vulnerable to mild recession compared to US and UK.
·Large deal pipeline is seeing increased traction for automation and cost efficiency programs and commentary on pipeline supporting growth visibility.
·Sector is witnessing vendor consolidation, where clients are looking to consolidate vendors from 6-7 vendors to 1-3 vendors.
·Management has revised margin guidance from 15-16% to 16-16.5% and operating margins of 21%-22% for FY23.