Its earnings remained muted on a sequential basis in the June quarter, given a significant slowdown in business amid global macroeconomic headwinds.
Earning Highlights Q1FY24:
Q1FY24 operating margins were resilient in an uncertain macro environment on the back of its continued focus on cost optimization. Company’s rigorous operational discipline, including improved productivity measures and higher utilization helped margins for the quarter.
Future Guidance: sharply cut its FY24 revenue growth estimate. Infosys now sees revenue growing just 1-3.5% in constant currency terms, against 4-7% earlier. However, retained its operating margin guidance of 20-22% for FY24.
Valuation & View:
Its earnings remained muted on a sequential basis in the June quarter, given a significant slowdown in business amid global macroeconomic headwinds. At the CMP of Rs. 1448, the stock is trading at annualised P/E multiple of 25.4 times with the annualised EPS of Rs. 57.40, which is fairly valued.
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