Arihant Capital Research Report on Infosys
Infosys (Infy) has reported a series of numbers in Q1FY22. CC’s income, INR income above our estimate, and Pat, EBIT is below our estimate. Consolidated Income INR 27,896 CR, + 6% / + 17.9% Qoq / Yoy on our estimates of INR 27,784 CR. EBIT consolidation stands on INR 6603 CR, against our estimates of INR 6,699 CR, up to 23.1% YOQ / 2.5% QoQ. On the front of the margin, the EBIT margin was enhanced by 100bps Yoy / -81bps Qoq to 23.7%. Pat consolidation saw a 21.7% yoy increase to INR 5,201 CR vs estimated INR 5,527 CR, which was affected by higher tax expenditure and lower operating margins. Revenue in terms of CC grew by 21.2% YoY and 4.7% Qoq. EPS stands on INR 12.24 in Q1FY22 vs. 10.0 in Q1FY21 respectively.
View
We appreciate infosys on P / E from 30x to EPS FY23E INR 60.4, which generates the target price of INR 1,812 per share. We increase our ranking to pile up from Hold.
