Infosys Q3 Results Review — Guidance Lifts, But Commentary Cautious; Motilal Oswal Retains 'Buy' On The Stock

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. 

Motilal Oswal Report

Infosys Ltd. reported Q3 FY25 revenue of $4.9 billion, growth of 1.7% QoQ/6.1% YoY constant currency versus our estimate of 1.0% QoQ CC. Ebit margins stood at 21.3% versus our estimates of 20.8%. Ebit grew 3.0% QoQ/11.9% YoY to Rs 89 billion (estimate Rs 86 billion). Profit after tax came in at Rs 68 billion, up 4.6% QoQ/11.5% YoY, in line with our estimate of Rs 68 billion.

The company upgraded its FY25 CC revenue growth guidance to 4.5-5% (3.75-4.5% earlier). The top end of guidance implied a QoQ decline of ~1.0% for 4Q. Large deal total contract value stood at $2.5 billion versus $2.4 billion in Q2, up 4.2% QoQ.

The book-to-bill ratio was 0.5 times. Net new TCV was up 57% QoQ. For 9M FY25, revenue/Ebit/PAT grew 5.5%/7.1%/7.8% compared to 9M FY24.

We expect revenue/Ebit/PAT to grow 10.5%/10.8%/9.0% YoY in Q4 FY25. We reiterate our Buy rating on Infosys with a target price of Rs 2,200, implying a 14% potential upside.

Click on the attachment to read the full report:

DISCLAIMER

This 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.