Comments
Prabhudas Lilladher
Infosys (Buy)
CMP: ₹3,156.40
Target: ₹3,920
Infosys performance in Q4FY14 was mixed-bag with revenue softer, but margins ahead of expectation. The management has been successful in delivering on ‘cost’ front, and making investments on ‘sales’ and ‘delivery’ front. The management has undertaken new initiatives to improve sales effectiveness through: 1) Hiring 200 sales professionals; 2) Re-skilled their technical staff for sales role; 3) Investing in high growth accounts to fill attrition. The efforts to expand presence in new geographies and verticals would start yielding result. Moreover, the management also endeavour to improve delivery effectiveness through: 1) Increased revenue offshoring; 2) Investing in tools and technologies for automations; 3) Investment in Tier-2 cities for delivery. We expect Infosys near term challenges to build revenue momentum for FY15 due to weaker exit rate in FY14. However, we expect margin tailwind to provide earning momentum. We see no downside risks to our estimates.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.