CA NeWs Beta*: Infosys Q4 expectations

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Thursday, April 14, 2016

Infosys Q4 expectations

1.       Consensus revenue growth expected @ 2% in USD QoQ.
2.       Margins expected to be steady.
3.       Utilisation should be down 40 bps
4.       Note that the Co has missed Q4 expectations for last 6 years.
5.       We expect Infosys to guide for 10-13% USD Revenue growth YoY for FY17 due to improvement in large client mining and mkt share gains.

Key to watch
1.       Commentory on large deal wins
2.       Growth from top 10 clients
3.       Inorganic growth targets
4.       How serious are the currency headwinds

Expected to see just about 12% EPS CAGR over FY16-18. Stock Trades @ 18X FY17(E) EPS of 65.

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