Infosys Mar'21 Quarter Results Largely In line With Expectations

Infosys seems to have delivered quarterly numbers that were largely in line with expectations. Emkay Global has said that the operating performance was as per expectations with revenue tad softer, while EBITM slightly higher.

The key positives according to the brokerage firm were broad-based growth, inline revenue growth (12-14% CC YoY) and EBITM (22-24%) guidance for FY22.

"Infosys reported revenues of US$3.6bn, up 2.8%/13% QoQ/YoY (CC 2%/9.6% QoQ/YoY), marginally lower than our expectations of $3.65bn. (TCS Q4FY21 revenues was US$ 5.99bn, 4.2% constant currency QoQ)

EBITM declined 94 bps QoQ to 24.5% and came 10 bps ahead of our expectations. (TCS Adj. EBITM expanded 20bps QoQ to 26.8%) Adj. Profits at Rs50.8bn (-2.3% QoQ, 17.5% YoY), below our expectations," the broking firm has stated.

"Infosys has guided for FY22 revenue growth to be in the range of 12-14% in constant currency and EBIT to be in the range of 22-24%, in-line with our expectations. FY22 revenue growth guidance implies 2.6-3.3% CQGR over Q1-Q4. TCV of deal intake at US$2.1bn in Q4. Large deal TCV for FY21 at an all-time high of US$14.1bn with 66% being net new.

The company has announced final divided of Rs15/share and share buyback of up to Rs 92 bn for a price not exceeding Rs1,750/share through open market route," Emkay Global Financial has stated.

Growth by Verticals (all in constant currency terms)

Financial Services: 15.6%YoY ( V/s 12% YoY in Dec'20 quarter)

Manufacturing: 3.4%YoY ( V/s -4.1% YoY in Dec'20 quarter)

Retail: 4.5%YoY ( V/s 2% YoY in Dec'20 quarter)

ECS: 4.9% YoY( V/s 4.9% YoY in Dec'20 quarter)

Communication: -0.8% YoY( V/s 0.8% YoY in Dec'20 quarter)

Hi Tech: 15.5% YoY( V/s 17.4% YoY in Dec'20 quarter)

Lifesciences: 18.3% YoY( V/s 11% YoY in Dec'20 quarter)

Growth by Geographies (all in constant currency terms)

US: 12.3%YoY ( V/s 8.8% YoY in Dec'20 quarter)

Europe: 5.1%YoY ( V/s 1.3% YoY in Dec'20 quarter)

ROW: -0.9% YoY( V/s 6.1% YoY in Dec'20 quarter)

India: 30.8% YoY( V/s 4.3% YoY in Dec'20 quarter)