23 Jul 2022 , 05:01 PM
Result date: 24th July, 2022
Recommendation: Buy
Target price: Rs1,800
Infosys is likely to report a strong performance in the June 2022 quarter, despite a high base. The company’s constant currency revenues could grow 3.5% sequentially, driven by broad-based momentum across verticals and strong order book. Deal momentum should remain healthy, as clients continue on their digital and cloud journey.
EBIT margins could remain flat sequentially despite wage hikes for junior employees, given the absence of visa costs and one-off client related costs from the March 2022 quarter. Analysts at IIFL Securities expect Infosys to retain its guidance of 13-15% growth in constant currency revenue and 22-24% EBIT margin for FY23.
Important management insights to watch out for:
June 2022 estimates | QoQ change | YoY change | |
Revenue (US$ mn) | 4,380 | 2.3% | 15.8% |
Revenue (Rs. mn) | 338,126 | 4.8% | 21.2% |
EBIT (Rs. mn) | 72,812 | 4.7% | 10.3% |
EBIT margin | 21.5% | - | (210) bps |
Profit After Tax (Rs. mn) | 57,844 | 1.7% | 11.6% |
EPS (Rs.) | 13.8 | 1.7% | 13.0% |
Source: IIFL Research
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