Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Infosys reported Q2FY12 results better than our/consensus expectation in a quarter,
that had demand weakening headwinds, but currency tailwinds. However, the
marginally lowererd guidance for FY12 US$ revenue below our, but ahead of
consensus estimates. We see result as better than consensus expectation.
Results ahead of our/consensus expectation: Infosys’ revenue grew by 8.2%
QoQ to Rs80.99bn for Q2FY12 (Guid.: Rs77.5bn, PLe: Rs80.4bn, Cons: Rs80.8bn)
in Indian rupee term, whereas revenue in USD term grew by 4.5% to US$1746m
(Guid.: $1743m, PLe: $1756m). The company reported an operating margin
expansion of 209bps QoQ to 28.2% (PLe: 27.0%, Cons: 28.7%) due to currency
tailwind of 3.6% in Q2FY12 (vs Q1FY12). The company reported EPS of Rs33.36
(Guid: Rs29.90, PLe: Rs31.40, Cons: Rs33.70), growth of 10.7% QoQ.
Geography and segments – NA and BFSI shines, Europe and Retail disappoints:
Revenue for NA and Europe grew by 6.3% and 0.6% QoQ, respectively, whereas
in terms of vertical, BFSI and Retails grew by 4.2% and 1.2% QoQ, respectively.
IMS and PES grew by 12.2% and 11% QoQ.
Pricing – pricing increase in‐line with expectation: The pricing improved by
0.5% QoQ (Onsite: -1.6%, Offshore: 3.1%). The company added 45 new clients.
Outlook – marginal downward revision in US$ revenue, but significant upward
revision in rupee EPS guidance: Infosys has marginaly revised its USD revenue
growth for FY12 (17-19% YoY growth, PLe: 18-20%). Infosys has revised its rupee
EPS guidance by 11% to Rs143-145, a growth of 21% YoY. For Q3FY12, Infosys
guided for 4.3% QoQ revenue growth to US$1821 and EPS of Rs38.86.
Valuations and Recommendation – See positive uptick today: We recommend
switch from TCS to Infosys due to lower exposure in Europe and Capital Market.
We may revisit our estimates post conference call.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Infosys reported Q2FY12 results better than our/consensus expectation in a quarter,
that had demand weakening headwinds, but currency tailwinds. However, the
marginally lowererd guidance for FY12 US$ revenue below our, but ahead of
consensus estimates. We see result as better than consensus expectation.
Results ahead of our/consensus expectation: Infosys’ revenue grew by 8.2%
QoQ to Rs80.99bn for Q2FY12 (Guid.: Rs77.5bn, PLe: Rs80.4bn, Cons: Rs80.8bn)
in Indian rupee term, whereas revenue in USD term grew by 4.5% to US$1746m
(Guid.: $1743m, PLe: $1756m). The company reported an operating margin
expansion of 209bps QoQ to 28.2% (PLe: 27.0%, Cons: 28.7%) due to currency
tailwind of 3.6% in Q2FY12 (vs Q1FY12). The company reported EPS of Rs33.36
(Guid: Rs29.90, PLe: Rs31.40, Cons: Rs33.70), growth of 10.7% QoQ.
Geography and segments – NA and BFSI shines, Europe and Retail disappoints:
Revenue for NA and Europe grew by 6.3% and 0.6% QoQ, respectively, whereas
in terms of vertical, BFSI and Retails grew by 4.2% and 1.2% QoQ, respectively.
IMS and PES grew by 12.2% and 11% QoQ.
Pricing – pricing increase in‐line with expectation: The pricing improved by
0.5% QoQ (Onsite: -1.6%, Offshore: 3.1%). The company added 45 new clients.
Outlook – marginal downward revision in US$ revenue, but significant upward
revision in rupee EPS guidance: Infosys has marginaly revised its USD revenue
growth for FY12 (17-19% YoY growth, PLe: 18-20%). Infosys has revised its rupee
EPS guidance by 11% to Rs143-145, a growth of 21% YoY. For Q3FY12, Infosys
guided for 4.3% QoQ revenue growth to US$1821 and EPS of Rs38.86.
Valuations and Recommendation – See positive uptick today: We recommend
switch from TCS to Infosys due to lower exposure in Europe and Capital Market.
We may revisit our estimates post conference call.
No comments:
Post a Comment