Infosys Q2 Results - Centrum Maintains 'Add' Rating On The Stock, Revises Target Price; Here's Why

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. Both revenue and Ebit margin were inline with estimates. Reported revenue of Rs 409.8 billion, up 4.3% QoQ in INR terms, up 2.5% QoQ in USD terms. Segment-wise, in cc terms, financial services grew by 2.3% YoY, energy and utilities grew by 10.9% YoY, manufacturing grew by 12.3% YoY and communication grew by 7% YoY. While, retail was soft, down 9.6% YoY. Ebit margin was flat QoQ at 21.1%. Large deal TCV of $2.4 billion versus $4.1 billion in Q1 FY25. Headcount grew by 2,456 employees QoQ to 317,788 employees. Attrition increased by 20 bps QoQ to 12.9%. Utilization increased by 60 bps QoQ to 85.9%. Added (gross) 86 clients during the quarter versus 87 in Q1 FY25. Increased its FY25 revenue growth guidance to 3.75%-4.5% in cc terms with Ebit margin of 20%-22%. It is seeing signs of improvement in the demand environment in the BFSI space. However, the discretionary tech spending remain muted. We expect revenue/Ebitda/profit after tax to grow at 11.5%/14.1%/12.6% over FY24-FY27E. We have revised our FY25E/FY26E/FY27E EPS by 0.2%/1.5%/NA. We roll over to Sep’26E for valuation and maintain Add Rating on the stock with revised target price of Rs 2,122 (versus Rs 1,864 earlier) at PE of 25 times on FY26E. We have increased target PE multiple from 24 times to 25 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 Q2 Results Review - Revenue Beat Drives Guidance Upgrade; Margin Slips: Dolat Capital.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 Q2 Results - Centrum Maintains 'Add' Rating On The Stock, Revises Target Price; Here's Why

The company posted Inline performance, increases revenue growth guidance to 3.75%-4.5% cc for FY25.

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