Infosys Q1 Results Review - Robust Operating Performance; Guides For 3-4% CC Growth For FY25: Centrum

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..Centrum Broking Report.Infosys Ltd. reported robust performance for the quarter. Overall, the performance was above expectation. It reported revenue of Rs 393.1 billion (up 3.7% QoQ in Indian rupee terms, up 3.3% QoQ in USD terms). It grew by 3.6% YoY in INR terms(up 2.1% YoY in USD terms). On YoY basis the growth was led by communication( up 5.4% YoY), manufacturing( up 6% YoY), energy( up 6.3% YoY). While, retail was down 3% YoY. Ebit margin increased by 99 bps QoQ to 21.1%, led by positive operating leverage. Announced large deal total contract value of $4.1 billion versus $4.5 billion in Q4 FY24. Headcount was down 1,908 employees QoQ to 315,332 employees. LTM Attrition was up 10 bps QoQ to 12.7%. Utilisation excluding trainees increased by 180 bps QoQ to 85.3%. No of active clients was down 15 QoQ to 1867. Days sales outstanding increased by 1 day QoQ to 72 days. It has Increased its guidance to 3-4% revenue growth in FY25 in cc terms with Ebit margin band of 20- 22%. It is seeing signs of improvement in the U.S. BFSI space especially in segments such as mortgages, card payments etc. We expect revenue/Ebitda/PAT to grow at 10.5%/13.2%/10.7% over FY24-FY26E. We have revised up our FY25E/FY26E EPS by 1.2%/3.5%. We maintain Add rating on the stock with revised target price of Rs 1,864 (versus Rs 1,577 earlier) at PE of 24 times on FY26E. We have increased target PE multiple from 21 times to 24 times to account for increased guidance for FY25E and certain green shoots in demand environment..Click on the attachment to read the full report: .Infosys Q1 Results Review - Strong Rebound, All Positives Are Factored In: Prabhudas Lilladher.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 - Robust Operating Performance; Guides For 3-4% CC Growth For FY25: Centrum

The brokerage maintains Add rating on the IT major with revised target price of Rs 1,864 at price-to-earnings of 24 times on FY26E.

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Infosys Q1 Results Review - Robust Operating Performance; Guides For 3-4% CC Growth For FY25: Centrum

The brokerage maintains Add rating on the IT major with revised target price of Rs 1,864 at price-to-earnings of 24 times on FY26E.

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