Infosys Q1 Results Review - Near Term Positives Likely In The Price: Systematix

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.Infosys Ltd. posted strong numbers in Q1 FY25. Even after adjusting for one-off benefit of 50 basis points in constant currency for one of its contracts in India, the company reported strong 3.1% growth in CC. For FY25, management increased revenue guidance from 1-3% growth in CC to 3-4%, which factors in-the strong Q1 performance, visible green shoots in the U.S. banking, financial services and insurance market,order book execution of previously won orders,consolidation of In-Tech acquisition from Q2 onwards. The company mentioned that the BFSI vertical in the U.S. market is witnessing recovery, especially in some sub-segments such as mortgage, capital market, card payments and infra, which otherwise faced stress a few quarters ago. However, the company stated that discretionary spending continues to remain under pressure. It also indicated that tech spending in few sectors like communications, retail and Hi-tech remains soft and clients are probably waiting for the macro environment to improve before indulging in any meaningful tech spending in these areas. Though margins improved in Q1 (adjusted for one-off, margins were up 60 bps QoQ versus reported increase of 100bps QoQ), management retained its margin guidance despite the sharp uptick in revenues, which came as a disappointment..Click on the attachment to read the full report:.Infosys Q1 Results Review - One-Offs Boost Guidance, But Demand Improving: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Infosys Q1 Results Review - Near Term Positives Likely In The Price: Systematix

The stock already trades at premium valuations, so the brokerage sees limited upside from the current level and have therefore downgraded the stock to Hold from Buy.

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Infosys Q1 Results Review - Near Term Positives Likely In The Price: Systematix

The stock already trades at premium valuations, so the brokerage sees limited upside from the current level and have therefore downgraded the stock to Hold from Buy.

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