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.


Popular posts from this blog

Multibagger formula: Consensus cannot make big money

Multibagger formula: Consensus cannot make big money, sticking the neck out can

Herd mentality is to human behavior what sand is to desert. On Dalal Street, it means going with the tide, the consensus.

But the market pays only when you use brains; that is, when you go stock picking with conviction, based on proper research.

If you are not doing this, you might just be sending some hard-earned money down the drain. This is what gives birth to scams like Speak Asia and Social Trade.

However, the stock market is neither Speak Asia nor Social Trade; it is a place where you can use smartness to beat inflation and compound your wealth. And how!

The headline ‘Multibagger formula’ must have forced you to click on this article. But before going ahead, you must be aware that making money is never ‘easy’.

History suggests money can be made only with proper research and hard work. Only then, can one find multibaggers like SymphonyBSE 1.62 %, Ajanta PharmaBSE -0.25 %, Escorts, MRF and NilkamalBSE …

The Magic Multibagger | 2 great ‘safety’ stocks for dividend investors

2 great ‘safety’ stocks for dividend investors
Dividends make an enormous difference to investment returns, especially if they are reinvested in more shares — in fact, they can easily turn a good return into a multibagger one. But a big dividend today is no good if it’s unsustainable in the long term and likely to be cut back in the future.

Today I’m looking at two that I think should provide steady streams of income for many years, from two very different sectors.
Motoring success

Dividend safety is one of my key requirements, and I reckon there’s a reliable one to be had from car dealer Pendragon (LSE: PDG). The firm, which sells new and second hand vehicles, and offers repair services, has seen its share price going through a tough patch over the past couple of years, and it took a dive as a result of 2016’s Brexit referendum result — a dip from which it hasn’t fully recovered, though many others have.
Today, at 32.75p, the shares are trading on a forward P/E of only around 8.3, and f…

Financial year end: Stocks that gave over 300% return to investors

Equity markets in this monetary 12 months has seen its highs and lows. One second when the markets were making the investors richer, quickly another second it left the traders empty pockets. General, it has managed to go thru lot of volatility led to due to situations like Brexit, demonetization, State assembly Elections, GST bill and different international and domestic factors that contributed in investors sentiments.
Despite all the turbulance, there are stocks that made the investors richer in just one year. There are companies which gave nearly 600% returns in this financial year. 
Regardless of all the turbulance, there are shares that made the buyers richer in just one year. There are corporations which gave just about 600% returns on this monetary year. These shares are termed as Multibagger inventory, because of this those equity stocks which gave more than a 100% return to investors. The term is most recurrently utilized in emerging markets like India, China.
1. Indian Metals…