Infosys Q4 Results Review - Big Miss, Muted Guidance; Would Lead To De-Rating: Dolat Capital

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. .Dolat Capital Report.Infosys Ltd. reported revenue decline of 3.2% QoQ in constant currency terms (our estimate: 0.3%), due to onetime revenue impact led by decline in volume, certain client specific issues and project cancellations. Concern spanned across banking, financial services and insurance/teleco/hitech verticals that collectively account nearly half of revenues.Operating profit margin declined by 50 basis points QoQ to 21% (our estimae: 21.2%), with tailwind from sub-con (up 50 basis points), reduction in fixed customer support (up 60 bps), offset by utilisation (down 70 bps) and one-off revenue impact (down 90 bps). Infosys has given revenue growth guidance of 4-7% in CC terms (versus our expectation of 6- 8%) for FY24, while operating profit margin at 20-22%. Revenue band widened due to lot of uncertainties as clients continue to focus on cost optimisation, delayed decision making and ramp down of deals. Big miss in FY23 revenue guidance (by 110 bps at top-end), weak outlook for FY24E resulted in cut in our earnings estimates by 3%/5% for FY24/FY25E..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 - Big Miss, Muted Guidance; Would Lead To De-Rating: Dolat Capital

Slower revenue conversion expected, uncertainties to restrict growth.

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Infosys Q4 Results Review - Big Miss, Muted Guidance; Would Lead To De-Rating: Dolat Capital

Slower revenue conversion expected, uncertainties to restrict growth.

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