YES Securities has given Buy recommendation for Infosys with a target price of Rs. 1560 in its research report issued on Apr 14, 2021

YES Securities’ research report on Infosys

Reported revenue of $3,613mn (up 2.8% QoQ reported and up 2% QoQ in CC terms). In INR terms, it reported revenue Rs 263.bn (up 1.5% QoQ), a slight miss on consensus estimate. It is to be noted that there was adverse impact of INR appreciation in reported INR revenue for the quarter; and also the revenue growth for the quarter was impacted by some time being taken in ramping up large deals. Digital revenue now accounts for 51.5% of revenue compared to 50.1% in Q3FY21 and grew 34.4%YoY in cc terms. EBIT margin declined by 94 bps QoQ to 24.5% on expected lines, led by wage hike in the quarter. Large deals win came in at $2.1bn (highest deal booking in 4th quarter over the last 3 years), led by strong traction in digital, cloud and data related technologies. LTM attrition came in at 15.2% vs 10% in Q3FY21 due to higher demand for talent in the market. Announced final divided of Rs 15/share, which along with interim dividend of Rs 12/share, comes to be Rs 27/share for FY21 (54% increase over FY20). Also announced share buyback of equity shares amounting to Rs 92bn, at a price not exceeding Rs 1,750/share.

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