Infosys Q4 Results Review - Weak Performance To Impact FY24 Topline Delivery: Motilal Oswal

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.Infosys Ltd. reported a weak Q4 FY23 revenue of $4.55 billion, down 3.2% QoQ in constant currency terms, significantly below our estimate of 0.6% QoQ CC growth. This was primarily due to broad-based reduction in business volumes, led by unplanned project ramp downs and delays in new businesses during the early part of Q4. Additionally, the company saw one-off project cancellations and issues with a few clients, primarily on discretionary spending, which it expects to recover in Q1 FY24. Further, total contract value for large deals in Q4 stood at $2.1 billion, down 37% QoQ.As a result of weak Q4 performance, Infosys missed its FY23 USD revenue growth guidance of 16.0-16.5% YoY CC, delivering only 15.4% YoY. For FY24, Infosys has given USD CC revenue growth guidance of 4-7% YoY, citing increased uncertainty for the wider guidance band. This implies a compound quarter growth rate of 1.5-2.5% between lower and upper end of guidance band, which we consider to be ambitious. Ebit margin declined 50 bps to 21.0% in Q4, in line with our estimate. Despite the impact of elevated employee cost, resulting from operating leverage, we found the margin management comforting. Infosys guided for FY24 Ebit margin to be between 20-22%, in line with our expectation, and implies flat margin delivery at the mid-point of guidance band..Click on the attachment to read the full report:.Infosys Q4 Results: FY24 Guidance Slashed As Revenue, Profit Decline.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Infosys Q4 Results Review - Weak Performance To Impact FY24 Topline Delivery: Motilal Oswal

Focus to shift to FY25 after near-term correction.

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Infosys Q4 Results Review - Weak Performance To Impact FY24 Topline Delivery: Motilal Oswal

Focus to shift to FY25 after near-term correction.

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