Infosys Q1 Results Review - Strong Revenue Beat; Growth Guidance Increased: HDFC Securities

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..HDFC Securities Institutional Equities.Infosys Ltd.’s Q1 sprung a positive surprise on the growth front, led by a revival in the BFSI vertical and an improvement in deal conversion to revenue (similar to Tata Consultancy Services Ltd.). Infosys’ revenue growth of 3.6% QoQ CC was driven largely by BFSI recovery contributing 2% QoQ to overall growth. In addition, 0.5% QoQ was on a one-time project basis. The increase in guidance in the lower band was on the Q1 beat, while the rise in the upper band included in-tech acquisition. H1-led/front-ended growth was expected, but the magnitude of outperformance increases the certainty of guidance top-end and perhaps even upside risk to growth estimates, which may keep the valuation multiples elevated. Importantly, positive commentary on U.S. BFSI can just be the start of the growth revival – TCS/LTIMindtree commentary also had shades of this. We are not overly concerned by this growth skew; in fact, accelerated T10/T25 bodes well. We have increased growth estimates, largely factoring in the Q1 beat; we maintain Add on Infosys with a target price of Rs 1,900 based on 25 times June-26E earnings per share..Click on the attachment to read the full report:.Infosys Q1 Results Review - Near Term Positives Likely In The Price: Systematix.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 - Strong Revenue Beat; Growth Guidance Increased: HDFC Securities

The IT Major's net-new large deal wins of $10.3 billion provide growth visibility for FY25/26E, says the brokerage.

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Infosys Q1 Results Review - Strong Revenue Beat; Growth Guidance Increased: HDFC Securities

The IT Major's net-new large deal wins of $10.3 billion provide growth visibility for FY25/26E, says the brokerage.

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