Infosys First Cut Q3FY14 - Microsec
Rajesh Desai
Dear Sir/Madam,
Infosys Ltd (INFY) announced its Q3 FY2014 on January 2014. The company’s top line came in line with our estimates whilst the bottomline outperform our estimates. INFY’s top line grew to `13026 crores which is higher by 0.5% and 25.00% on QoQ basis & YoY basis respectively while its bottom line came at `2879.00crores which is up by staggering 19.60% and 21.50% on QoQ and YoY basis respectively. On the dollar($) front the company reported a revenue of $2100mn which is up by ~10% on yearly basis however it missed the estimates on the quarterly basis. During the quarter the company added 54 clients. In this quarter the attrition rate is at 18.10%.During the quarter the average rate for rupee was INR 62.03/$.In the constant currency terms apart from North America all the other regions has shown growth sequentially.
A glimpse of the same is as follows:
INFY - Actual vs Estimates |
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Particulars |
Q3 FY14A |
Q3 FY14E Microsec |
Q3 FY14E Bloomberg |
Variation vs Estimates |
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Microsec |
Bloomberg |
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Revenues | 13,026.0 |
13,114.4 | 13,089.6 | -0.7% | -0.5% | ||
EBIT | 3,259.0 |
2,821.0 | 3,088.1 | 15.5% | 5.5% | ||
EBIT Margins (%) | 25.0% | 21.5% | 23.6% | 351 bps |
143 bps |
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Net Profit | 2,879.0 |
2,472.5 | 2,693.2 | 16.4% | 6.9% | ||
PAT Margins (%) | 22.1% | 18.9% | 20.6% | 325 bps |
153 bps |
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EPS | 50.32 |
43.26 | 46.76 | 16.3% | 7.6% | ||
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Source: Company Data, Microsec Research, In ` Crores |
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INFY - Q3 FY14 Results |
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Particulars |
Q3 FY14A |
Q2 FY14A |
Q3 FY13A |
Change |
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QoQ |
YoY |
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Revenues | 13,026.0 |
12,965.0 | 10,424.0 | 0.5% | 25.0% | ||
EBIT | 3,259.0 |
2,837.0 | 2,677.0 | 14.9% | 21.7% | ||
EBIT Margins (%) | 25.0% | 21.9% | 25.7% | 314 bps |
(66)bps |
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Net Profit | 2,879.0 |
2,407.0 | 2,369.0 | 19.6% | 21.5% | ||
PAT Margins (%) | 22.1% | 18.6% | 22.7% | 354 bps |
(62)bps |
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EPS | 50.32 |
42.12 | 41.47 | 19.5% | 21.3% | ||
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Source: Company Data, Microsec Research, In ` Crores |
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*The company revised their revenue guidance to 11.5%-12% for FY14 from the earlier 9%-10% in $ terms.
* The management opined that the global economic environment has improved and looks exciting for IT services industry.
*They have won 20 deals during the quarter but the size of the deal is not known.
* The revenue visibility is at 24.4-24.9% for FY14 as per IFRS.
The street is perceiving the upward revision of the guidance is pretty much in line and factored in the stock which limits or delayed the upside potential for the scrip in the immediate future.
Regards,
Team Microsec Research
Microsec Capital Limited
Tel: 91 33 30512100
Fax: 91 33 30512020
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CA. Rajesh Desai