Skip to main content

Infosys post Q4 earnings and FY18 guidance: What Analysis Says About?

The IT major on Thursday reported a consolidated profit at Rs 3,603 crore for the January-March quarter, de-growth of 2.8 percent from Rs 3,708 crore in previous quarter.



Infosys on Thursday reported a consolidated profit at Rs 3,603 crore for the January-March quarter, de-growth of 2.8 percent from Rs 3,708 crore in previous quarter. Revenue also fell 0.88 percent to Rs 17,120 crore on sequential basis.

The earnings, barring bottomline, missed analysts' expectations. Even its FY18 guidance was lower than estimates, but the announcement of Rs 13,000-crore payout through dividend or share buyback during the year and fall in attrition rate minimised losses in the share price. The stock fell 2.88 percent intraday.

"Unanticipated execution challenges and distractions in a seasonally soft quarter affected our overall performance," Vishal Sikka, CEO said.

Here's what analysts are talking about the company's results.

Citi said that the company’s Q4 results were marginally lower than estimates. It saw Q4 realisation decline of over 1 percent quarter on quarter in constant currency terms. Meanwhile, the FY18 EBIT margin at 23-25 percent is lower against the consensus of over 25 percent. The fourth quarter’s constant currency revenue was flattish quarter on quarter.

Morgan Stanley

Morgan Stanley said that the revenue was below its estimates. The guidance too turned out to be below its base case scenario. It implies a deceleration based on constant currency revenue growth as well as a growth of 2.1-2.9 percent QoQ over the next four quarters.

Motilal Oswal

Motilal Oswal believes that the FY18 constant currency guidance of 6.5-8.5 percent was slightly below its expectation of 7-9 percent. This marginally lower guidance seems an adjustment for Q4 revenue miss. The CC guidance implies a compounded quarterly growth rate (CQGR). On the payout policy, it feels that the act is only a terminology change.

Kotak Institutional Equities

Kotak Institutional Equities has an add recommendation for the stock. The research firm believes that key metrics were better than the headline numbers and that an increase in payouts was a positive. Overall, the business is moving in the right direction, but with interruptions. But the new deal signings were weak and needs close monitoring.

The company’s constant currency guidance is below the estimate of 0.9 percent. its FY18 revenue growth guidance implies CQGR Of around 2.2-2.8 percent over Q1-Q4FY18. It also expects 4-6% cut in FY2018-19 earnings estimates.

Labels:

Comments

Post a Comment

Popular posts from this blog

Rewards for speculators who ride out unpredictable markets

The previous couple of years have been unstable ones for South African speculators, and a few late shocks to the nearby and worldwide money related frameworks –, for example, the bureau reshuffle, Brexit, Donald Trump's triumph in the United States – have added to the instability. What ought to financial specialists do in times, for example, these? Presently, like never before, speculators need to adhere to their long haul monetary plans and not change out of higher-hazard ventures, for example, values, into more secure ones, for example, money instruments. Financial specialists who change all through ventures in view of how they read the business sectors charge far more terrible, for the most part, than the individuals who stay consistent with their speculation objectives. The reason is that they tend to switch at precisely the wrong circumstances: they offer when the market is low and purchase when it is high. Speculators who change all through ventures in view of how ...
1 comment
Read more

Sensex Fall More Than a 100 Factors, Under Nifty 9950, Pressure on Pharma Stocks

The fall in the stock market continues to this present day. On Tuesday, after the closure with the autumn, the market began on Wednesday with the decline and fall.The Sensex has misplaced greater than a hundred factors in the initial business. The Nifty reached under 9950 at the moment Sensex 31903 and Nifty fell one hundred ten points to alternate at 9,945, down 33 points. these days many of the drive is being considered on pharma sector. Sharp Fall in Small Shares.. In today's business small shares are seeing a sharp decline. The smallcap index is set 1 percent down. The mid-sector sector index is down 0.9 percent. within the midcap index, Berger Paints has 4 per cent, Tata chemicals 3.6 per cent, GMR Infra is buying and selling 3.7 per cent down. in the smallcap index, RSW 10%, HDIL 8.6%, Gammon Infra dropped 7%. Pharma Stocks Crash, Metallic Continues to Upward Thrust. In the Trading of the pharma sector, the largest decline in stocks is viewed on Wednesday. The Pha...
Post a Comment
Read more

RBI’s Diwali reward to markets! Banks, realty, and NBFCs to hog limelight

A price reduce simply in advance of the festive season augurs well for the rate delicate sectors reminiscent of banks, NBFCs, automobiles and capital goods. The Reserve bank of India (RBI) on Wednesday delivered what the D-side road needed, a minimize of 25 bps factors beforehand of festive season. however, the relevant financial institution is not going to oblige traders with some other fee cut in its upcoming policy meet on October 3 and 4. The market witnessed classic buy-on-rumours and sell-on-information kind of phenomena quickly after the imperative financial institution declared its verdict. The S&P BSE Sensex fell virtually one hundred factors while the Nifty50 ended under 10,100. The Nifty bank closed 67 points decrease at 25,055. The RBI stored projections for inflation at 4 % and is expected to be at the same level whereas problem over up to date loan waiver via the quite a lot of state governments have been flagged purple in the near ti...
Post a Comment
Read more