Infosys Q2 Review: Strong Deal Flow Underpins Guidance Upgrade, Says Dolat Capital
Infosys Ltd. reported revenue growth of 2.2%/2.9% QoQ/YoY in constant currency, beating estimates. The company’s operating profit margin expanded 20 basis points QoQ to 21.0%, driven by currency tailwinds and operational gains.
Deal Flow and Guidance Upgrade
The strong deal flow has underpinned the guidance upgrade, according to Dolat Capital. The company’s recently announced JV to acquire 75% stake in Versent, an Australia-based tech consultancy, strengthens Infosys’ position in a key geo and adds niche skills in data and digital solutions. This move is expected to boost the company’s growth prospects and increase its competitiveness in the global market. To learn more about the Indian IT sector, visit our website.
Revenue Growth and Operating Profit Margin
Infosys’ revenue growth of 2.2%/2.9% QoQ/YoY in constant currency was higher than expected. The company’s operating profit margin expanded 20 basis points QoQ to 21.0%, driven by currency tailwinds and operational gains. However, the normalization of support costs from a one-time benefit in Q1 partially offset these gains. For more information on Nifty and Sensex, click here.
Analyst Views and Recommendations
Dolat Capital has maintained its ‘Add’ rating on Infosys, citing the strong deal flow and guidance upgrade. The brokerage firm believes that the company’s growth prospects are intact and that it is well-positioned to benefit from the increasing demand for digital transformation services. To stay updated on the latest Indian stock market news, visit our website.
Investor Sentiment and Market Outlook
The strong Q2 performance by Infosys has boosted investor sentiment, with the stock price rising by over 2% in the aftermath of the results announcement. The market outlook for the company remains positive, with most analysts expecting it to continue its growth momentum in the coming quarters. For more insights on Q2 results of Indian companies, click here.
Conclusion
In conclusion, Infosys’ Q2 performance has been strong, with the company beating estimates on revenue growth and operating profit margin. The guidance upgrade and strong deal flow are expected to boost the company’s growth prospects, making it an attractive investment option for investors. To learn more about investing in the Indian stock market, visit our website.
