IndiaCatalog.com
India News
Search Web Directory
News Home
Infosys: Execution rigour is the mantra for the company going forward
Posted on 16th April 2018
Infosys' constant currency revenue growth guidance of 6-8% year-on-year (y-o-y) for FY19 was on expected lines. The marginal beat can be ascribed to a weaker exit in 4Q (0.6% CC) than our expectation (1.5% CC). This implies that the compounded quarterly growth rate (CQGR) will be better if the guidance is met.

To meet its guidance range of 6-8% y-o-y constant currency (CC) revenue growth in FY19, Infosys will have to clock a CQGR of 1.8-2.5% in the next year. We are assuming 7.5% y-o-y CC growth factoring the guidance and incremental revenue from the acquisition. A cross-currency tailwind of 130 basis points (bps) would imply USD revenue growth of 8.8% for FY19.

Net profit grew 2.4% quarter-on-quarter (q-o-q) to Rs 36.9 billion, below our estimate of Rs 38 billion, due to an impairment loss of Rs 1 billion taken in respect of Panaya.

Infosys also cut its FY19 EBIT margin guidance to 22-24% versus the FY18 band of 23-25%. This will largely factor in investments in localised talent, revitalising sales, digital capabilities and delivery staff. The 1% revision amounts to $120 million, and considering that these are investments in people, which will only come gradually, we see the lower end of the margin band as conservative, and expect it to be raised during the course of the year.

The additional $2 billion payout over and above the normal dividend payout (policy of 70% of FCF) will peg the cash returns at a high level (Rs 100/share pre-tax, 8.6% of current market price) for the second year running. This should act as a crucial support for the stock.

Given these developments, we have cut our earnings by around 2% for FY19/20E, factoring in the weaker exit and the marginal profitability decline. Infosys' performance in the recent years has been in line with peers.

The guidance on revenues was on expected lines. However, we believe that the lower end of the EBIT margin band of 22% is conservative, with pricing pressures seemingly tailing off and the share of higher-margin Digital inching up. Our price target of Rs 1,330 discounts forward earnings by 16x. We maintain a 'buy' rating on the stock in the light of the developments.

Related Companies: Infosys Technologies Limited   

Other Latest News
Amazon return policy: You might be banned for making too many returns
Posted on 25th May 2018
NEW DELHI: Gone are the days when you could return your Amazon orders as you like, now it might get you banned from the brand’s service. As per the latest update, Amazon recently banned consumers from making purchases on their site for practices like returning too many items.

2018 Hyundai Elite i20 CVT launched in India at Rs 7.04 lakh: Cheapest automatic in the segment
Posted on 25th May 2018
Hyundai Indian launched the 2018 Elite i20 during the Auto Expo this in February, with a promise that a CVT would be launched in the coming months as well. And now, the Elite i20 CVT has been launched in the country at a starting price of Rs 7.04 lakh (ex-showroom, Delhi), that makes it the most affordable car with a CVT gearbox in the segment. The CVT option will be available in two variants of the 2018 Elite i20 - Magna and Asta, which is priced at Rs 8.16 lakh (ex-showroom).

Government orders Coal India to supply ‘out-of-turn’ to PSUs; private plants to be hit
Posted on 25th May 2018
In a jolt to private power producers, the government has ordered Coal India Ltd to make ‘out-of-turn’ allotment of scarce coal to central and state electricity generation companies. The order follows a Coal Ministry directive earlier this month that instructed companies like Mahanadi Coalfields Ltd to deploy rakes of coal only for power plants and not other users like captive power plants of private industries.

Sebi serves notice on ICICI Bank CEO Chanda Kochhar in Videocon loan case
Posted on 25th May 2018
Market regulatory Sebi has served a notice on ICICI Bank CEO and MD Chanda Kochhar on dealings of the bank with Videocon Group and Nupower, an entity in which her husband Deepak Kochhar has economic interests, the private sector lender said on Friday.

Appropriate response would be submitted to the Sebi, the country's largest private bank said in a stock exchange filing.


Essar Steel insolvency: Lenders move NCLAT for early hearing of case
Posted on 25th May 2018
Essar Steel lenders have moved the National Company Law Appellate Tribunal seeking an early hearing of appeals filed by suitors for the insolvency-bound firm, saying they are losing a lot of money because of the delays.

The NCLAT had on May 22 ordered status quo on insolvency of Essar Steel for two months as it admitted petitions of NuMetal and ArcelorMittal over the bidding eligibility.


» Post a FREE Classified Advertisement
Inviting Real Estate Agents, Job Placements Agents, Educational Institutes, Software Service Providers, Real Estate Builders, Marriage Bureaus, Travel Agents, Restaurant Owners, Health & Fitness Centers and other Local Businesses to Post a FREE Classified Advertisement on Cootera.com Classifieds Website.
Jobs in India India Real Estate Automobiles Matrimonials Beauty & Fitness

Add a comment for Infosys: Execution rigour is the mantra for the company going forward
Please only use this form to enter comments on the above company. All comments are reviewed before they are displayed on the web site. Not all comments may be displayed. Check back with us to see if your comments have been displayed.
If you want us to email the comments posted by users, please Subscribe by email
Name*
Comments*
Security Code*
 

Be the first person to write a business review for Infosys: Execution rigour is the mantra for the company going forward

Most Read News

Ashok Leyland net profit up 40% to Rs 6 bn, total income rises to Rs 88 bn

Good news flyers! No cancellation fee if tickets cancelled within 24 hours

Ashok Leyland Q4 profit rises 40%

Infosys puts a break on fresher hiring, relying more on experienced hands

Tata Motors pulls the plug on ageing Indica, Indigo models

More India News

  India Web Directory
Business Profiles
Automotive Directory
IT/ITES/BPO Directory
Hotel Directory
Health Directory
Business Directory
Gems & Jewellery
Education Directory
Real Estate Directory
Agriculture Directory
Logistics Directory
Yellow Pages
NRI Guide
Photo Galleries
Global Web Directory
*** FREE India Classifieds
Order Premium Listings
Submit a Site
Business Reviews
Home
About us
Link to us
Advertise
Contact us
Google Search Keywords: India Catalog, IndiaCatalog, India Web Directory
    © 1999 - 2018 IndiaCatalog.com
    All Rights Reserved
Privacy Statement