4QFY2017 Result Update | IT
April 19, 2017
Infosys
BUY
CMP
`922
Performance highlights
Target Price
`1,179
(` cr)
4QFY17
3QFY17
% chg (qoq) 4QFY16
% chg (yoy)
Investment Period
12 Months
Net revenue
17,120
17,273
(0.9)
16,550
3.4
EBITDA
4,658
4,769
(2.3)
4,589
1.5
Stock Info
EBITDA margin (%)
27.2
27.6
31bp
27.7
39bp
PAT
3,603
3,708
(2.8)
3,597
0.2
Sector
IT
Market Cap (` cr)
211,870
Source: Company, Angel Research
Net Debt (` cr)
(32,666)
For 4QFY2017 the results of Infosys were below expectations, on the sales front
Beta
0.7
the company has posted revenue of US$2,569mn v/s expectations of
52 Week High / Low
1,278/900
US$2,589mn, with 0.7% qoq growth. On CC (constant Currency) terms, the
Avg. Daily Volume
249,247
revenues have remained flat qoq. The volume growth during the period came in
Face Value (`)
5
at 1.2% qoq. On the operating margins front, the EBIT margin came in at 24.6%
BSE Sensex
29,319
v/s 24.6% expected. The PAT came in at `3,603cr v/s `3,708cr, a QoQ dip of
Nifty
9,105
2.8%. On guidance front, revenue guidance for FY2018 was given in the range
Reuters Code
INFY.BO
of 6.5-8.5% with EBIT margins expected to be in the range of 23-25%. We
Bloomberg Code
[email protected]
maintain our BUY rating on the stock.
Quarterly highlights: In Rupee terms, revenues came in at `17,120cr v/s
Shareholding Pattern (%)
`17,244cr expected, down 0.9% qoq. In terms of the geographies on CC terms,
Promoters
12.8
USA posted 1.2% qoq growth, while Europe posted a dip of 1.6% qoq. India and
MF / Banks / Indian Fls
19.6
ROW posted a dip of 6.9% and 1.3% qoq respectively. In terms of Industries,
FII / NRIs / OCBs
56.9
ECS posted a qoq growth of 2.8%, while FSI posted a qoq growth of 0.5%. The
Indian Public / Others
10.7
verticals which posted dip were RCL, which dipped by 3.1 qoq growth, while
MFG & Hi Tech posted a flat qoq growth. On EBIT front, the company posted an
EBIT of 24.6% v/s 24.6% expected, down 49bps qoq. Consequently, PAT came in
Abs.(%)
3m 1yr
3yr
at `3,603cr v/s `3,708cr expected, recording de-growth of 2.8% qoq.
Sensex
7.6
13.6
29.6
Infosys
(3.0)
(25.5)
15.7
Outlook and valuation: For FY2018, Infosys has given the revenue growth
guidance in the range of 6.5-8.5% in CC terms, while EBIT is expected to be
around 23-25%. While the margin guidance is lower, a major part of the same is
on the back of the currency appreciation & proposed increase in onsite capacity
3-year price chart
to mitigate any potential regulatory headwinds. We maintain our BUY rating on
1,400
the stock.
1,200
Key financials (Consolidated, IFRS)
1,000
Y/E March (` cr)
FY2016
FY2017
FY2018E
FY2019E
800
Net sales
62,441
68,484
73,963
80,619
% chg
17.1
9.7
8.0
9.0
600
Adj. net profit
13,491
14,353
14,785
15,916
400
% chg
9.4
6.4
3.0
7.7
EBITDA margin (%)
27.4
27.2
26.0
26.0
EPS (`)
59.0
62.5
64.4
69.3
Source: Company, Angel Research
P/E (x)
15.6
14.8
14.3
13.3
P/BV (x)
3.4
3.1
2.8
2.6
RoE (%)
21.8
20.8
19.7
19.6
RoCE (%)
20.7
20.3
20.1
20.4
Sarabjit kour Nangra
EV/Sales (x)
2.8
2.6
2.3
2.0
+91 22-39357800 Ext: 6806
EV/EBITDA (x)
10.3
9.5
8.7
7.8
[email protected]
Source: Company, Angel Research; Note: CMP as of April 18, 2017
Please refer to important disclosures at the end of this report
1
Infosys | 4QFY2017 Result Update
Exhibit 1: 4QFY2017 performance (IFRS, consolidated)
(` cr)
4QFY17
3QFY17
% chg (qoq)
4QFY16
% chg (yoy)
FY17
FY16
% chg (yoy)
Net revenue
17,120
17,273
(0.9)
16,550
3.4
68,484
62,441
9.7
Cost of revenue
10,324
10,405
(0.8)
9,893
4.4
41,550
37,689
10.2
Gross profit
6,796
6,868
(1.0)
6,657
2.1
26,934
24,752
8.8
SG&A expenses
2,138
2,099
1.9
2,068
3.4
8,330
7,723
7.9
EBITDA
4,658
4,769
(2.3)
4,589
1.5
18,604
17,029
9.2
Depreciation
446
435
2.6
369
20.9
1,703
1,409
20.9
EBIT
4,212
4,334
(2.8)
4,220
(0.2)
16,901
15,620
8.2
Other income
746
820
(9.0)
772
(3.4)
3,080
3,122
(1.3)
PBT
4,958
5,154
(3.8)
4,992
(0.7)
19,981
18,742
6.6
Income tax
1,330
1,446
(8.0)
1,394
(4.6)
5,598
5,251
6.6
Exceptional item
25
-
1
30
3
Reported PAT
3,603
3,708
(2.8)
3,597
0.2
14,353
13,494
6.4
Adjusted PAT
3,603
3,708
(2.8)
3,597
0.2
14,353
13,491
6.4
EPS
15.8
16.2
(2.8)
15.2
3.7
62.8
43.3
45.1
Gross margin (%)
39.7
39.8
(6)bp
40.2
(53)bps
39.3
39.6
(31)bp
EBITDA margin (%)
27.2
27.6
(40)bp
27.7
(52)bps
27.2
27.3
(11)bp
EBIT margin (%)
24.6
25.1
(49)bp
25.5
(90)bps
24.7
25.0
(34)bp
PAT margin (%)
21.0
21.5
(42)bp
21.7
(69)bp
21.0
21.6
(65)bp
Source: Company, Angel Research
Exhibit 2: 4QFY2017 - Actual Vs Angel estimates
(` cr)
Actual
Estimate
% Var.
Net revenue
17,120
17,244
(0.7)
EBITDA margin (%)
27.2
27.1
6.8bps
PAT
3,603
3,560
1.2
Source: Company, Angel Research
Revenues lower than expectation
For 4QFY2017 the results of Infosys were below expectations, on the sales front
the company has posted revenue of US$2,569mn v/s expectations of
US$2,589mn, with 0.7% qoq growth. On the CC (constant Currency) terms, the
revenues have remained flat qoq. The volume growth during the period came in at
1.2% qoq. Volume growth in the onsite was 1.9% qoq, while 0.9% qoq growth was
in the offshore. In Rupee terms, the company posted sales of `17,120 v/s
expectations of `17,244cr, a dip of 0.9% qoq.
In terms of the geographies on CC terms, USA posted 1.2% qoq growth, while
Europe posted a dip of 1.6% qoq. India and ROW posted a dip of 6.9% and
1.3% qoq. In terms of Industries, ECS posted a qoq growth of 2.8%, while FSI
posted a qoq growth of 0.5%. The verticals which posted dip were RCL, which
dipped by 3.1 qoq growth, while MFG & Hi Tech posted a flat qoq growth.
April 19, 2017
2
Infosys | 4QFY2017 Result Update
Exhibit 3: Trend in volume growth qoq (Effort wise)
8
6
4.4
4.0
4
3.3
3.1
2.7
2.32.4
2.2
1.9
2
1.8
1.2
0.9
0.6
0.2
0.1
0
4QFY16
1QFY17
2QFY17
3QFY17
4QFY17
Offshore
Onsite
Total volume growth
Source: Company, Angel Research
Exhibit 4: Trend in volume and USD revenue growth (QoQ)
8
7
6
3.9
5
4
3
2.2
2
4.0
1.2
2.4
2.2
1.9
1
0.2
0
0.0
(1)
(0.3)
4QFY16
1QFY17
2QFY17
3QFY17
4QFY17
Revenue growth (constant currency)
Volume growth
Source: Company, Angel Research
Industry wise, revenue from FSI, the company’s anchor vertical, which contributed
33.5% to revenues, grew by 0.5% qoq; in CC terms, revenue from FSI grew by
1.3% qoq. The Manufacturing industry vertical, which contributed 22.4% to
revenues, grew by 0.4% qoq. In CC terms, the revenue from this vertical
was flat sequentially.
The Retail, CPG and Logistics segment (RCL; contributed 22.7% to revenues)
reported a 3.1% qoq growth. In CC terms, the revenue from RCL grew by 2.7%
qoq. The Energy Utilities and Communications & Services segment contributed
21.4% to revenue, reporting a growth of 3.9% qoq in revenue and 2.8% qoq on
CC basis.
April 19, 2017
3
Infosys | 4QFY2017 Result Update
Exhibit 5: Growth trend in industry segments (Reported basis)
Particulars
% to revenue
% growth QoQ
% growth YoY
FSI
33.5
1.3
7.3
Banking and financial services
27.4
1.4
5.0
Insurance
6.1
0.7
18.6
Manufacturing
22.4
0.3
3.6
RCL
22.7
(2.7)
(2.7)
Retail and CPG
14.1
(2.7)
(1.3)
Transport and logistics
2.0
0.7
16.7
Life Sciences
4.6
0.7
(15.2)
Healthcare
2.0
(12.4)
5.0
ECS
21.4
4.1
12.4
Energy and utilities
5.0
0.7
1.0
Communication and services
9.9
9.6
20.9
Others
6.5
(0.8)
10.1
Source: Company, Angel Research
In terms of geographies, revenue from North America grew by 1.2% qoq in CC
terms, while other geographies such as Europe de-grew by 1.6% qoq and RoW de-
grew by 1.3% qoq (both in CC terms). India posted a 6.9% qoq de-growth in CC
terms.
Exhibit 6: USD growth trend in geographies QoQ (CC basis)
6
4.9
5.2
5
4
3.6
3.7
3.2
2.7
3
2.4
1.6
2
1.2
1
1
0.6
0.3
0
-0.6
(1)
(1.3)
(1.5)
(2)
4QFY16
1QFY17
2QFY17
3QFY17
4QFY17
North America
Europe
Rest of the world
Source: Company, Angel Research
April 19, 2017
4
Infosys | 4QFY2017 Result Update
Hiring and utilization
Infosys added 9,130 gross employees in 4QFY2017, of which 3,967 were lateral
additions. The net reduction number for the quarter stood at 601. Attrition (for
standalone entity) cooled down in 4QFY2017; it came down to 17.1% (LTM) v/s
18.4% in 3QFY2017.
Exhibit 7: Employee metrics
4QFY16 1QFY17 2QFY17 3QFY17 4QFY17
Gross addition
9,034
13,268
12,717
9,120
9,130
Net addition
661
3,006
2,779
(66)
601
Gross lateral emp. addition
5,266
5,260
5,752
4,000
3,967
Attrition - LTM basis (%)*
17.3
21.0
20.0
18.4
17.1
Source: Company, Angel Research, Note-* excluding subsidiaries
The utilization rate including trainees grew by 40bps qoq to 78.2% (77.8% in
3QFY2017); while excluding trainees, it grew by 10bps qoq to 82.0%.
Exhibit 8: Trend in utilization (Services and Consulting + Projects)
85
82.5
81.9
82
83
80.5
80.1
81
79
77
78.2
77.7
77.8
75
76.5
73
74.7
71
69
67
4QFY16
1QFY17
2QFY17
3QFY17
4QFY17
Including trainees
Excluding trainees
Source: Company, Angel Research
Margins dips
On the operating front, EBDITA and EBIT margins dipped by ~40bps qoq and
~49bps qoq to 27.2% v/s an expected 27.1% and 24.6% respectively. Margins
during the quarter were impacted because of INR appreciation to the tune of
35bps, while cross-currency movements and revenue hedges resulted in a tailwind
of 50bps. However, this was more than offset by a decline in realization and
increased costs, resulting in the 40bps decline.
April 19, 2017
5
Infosys | 4QFY2017 Result Update
Exhibit 9: Trend in EBIT margin
100
26
25.5
50
80
60
25.1
24.9
25
20
0
24.6
(50)
(50)
24.1
24
(100)
(140)
(150)
23
4QFY16
1QFY17
2QFY17
3QFY17
4QFY17
Margin movement (qoq)
EBIT margin (%)
Source: Company, Angel Research
Client pyramid
Infosys added 71 new clients (gross additions) during the quarter, taking its
total active client base to 1,162. The client addition was across the board. The
company bagged New deals with TCV of US$806mn, during the quarter. TCV of
deal wins on LTM basis is US$3.5bn, which is 10% higher.
Exhibit 10: Client metrics
Particulars
4QFY16 1QFY17 2QFY17 3QFY17 4QFY17
Top client (% of revenue)
3.6
3.6
3.5
3.1
3.3
Gross Client addition
89
95
78
77
71
Active client
1092
1126
1136
1152
1162
US$1mn-5mn
290
306
300
316
316
US$5mn-10mn
91
88
91
80
93
US$10mn-20mn
89
93
97
97
98
US$20mn-50mn
32
35
35
36
35
US$50mn-100mn
17
21
24
22
25
US$100mn-200mn
8
11
12
14
13
US$200mn-300mn
5
6
5
5
5
US$300mn plus
1
1
1
1
1
Source: Company, Angel Research
Concall Highlights
Infosys won deals worth TCV of US$806mn during the quarter.
Changes in the regulatory landscape around visa usage are anticipated.
However, the company has been driving local hiring, and reducing
dependency on H1B visas.
Infosys maintained its guidance of EBIT margin band of 23-25% for the
medium term.
April 19, 2017
6
Infosys | 4QFY2017 Result Update
Investment arguments
Revenue guidance moderate for FY2018: The Management has given the revenue
growth guidance for FY2018, which is moderate. The company has guided for
6.5-8.5% CC growth. This implies CC revenue growth of 2.2-3.0% qoq for the
future quarters. The company faced multiple challenges in FY2017 among which
execution issues in Consulting and the loss of the RBS contract were the major
ones, resulting in a loss of revenue growth momentum. For FY2017, the company
posted a 8.3% growth in CC terms v/s a guidance of 8.4-8.8% growth (in CC
terms). Currently, we have factored a growth for FY2018 (INR and USD growth of
8.0% and 8.0% respectively). Over FY2017-19E, we expect USD and INR revenue
to grow at a CAGR of 8.5% and 8.5%, respectively.
Operating margin likely to be range bound in near term: For FY2018, the
company had guided for an EBIT margins of 23-25%, mainly factoring in currency
impact and investment in onsite facility. For FY2017, the EBIT margins came in at
24.7%, which was against the guidance of 24-26%. Over FY2017-19E, we expect
an EBIT CAGR of 6.1%, with FY2018E and FY2019E EBIT margins expected to
come in at 23.6% respectively. The moderation in margin is expected to be for the
near term, as the company plans to move towards automation, in order to
safeguard its EBIT margin pressures.
Outlook and valuation
The company has downgraded its USD revenue growth guidance for FY2018 to
6.5-8.5% on CC basis. We expect the company to post ~8.0% USD revenue
growth in FY2018. The company has changed its capital allocation policy from
paying out 50% of PAT to 70% of Free Cash Flow. Additionally, it would payout
US$2bn in FY2018, however, the mode and timeline would become clear over
time. The stock currently trades at a valuation of 14.3x its FY2018E earnings. We
recommend a BUY on the stock with a Target Price of `1,179.
Exhibit 11: Key assumptions
Parameters
FY2018E
FY2019E
Revenue growth - USD terms (%)
8.0
9.0
USD-INR rate
67.1
67.1
Revenue growth - INR terms (%)
8.0
9.0
EBITDA margin (%)
26.0
26.0
Tax rate (%)
28.0
28.0
EPS growth (%)
3.0
7.7
Source: Company, Angel Research
April 19, 2017
7
Infosys | 4QFY2017 Result Update
Exhibit 12: One-year forward PE (x)
1,750
1,500
1,250
1,000
750
500
250
0
Price
26x
22x
18x
14x
10x
Source: Company, Angel Research
Exhibit 13: Recommendation summary
Company
Reco
CMP Tgt. price
Upside
FY2018E FY2018E
FY2016-18E
FY2018E
FY2018E
(`)
(`)
(%)
EBITDA (%)
P/E (x)
EPS CAGR (%)
EV/Sales (x)
RoE (%)
HCL Tech
Buy
808
1,000
23.7
20.5
13.0
9.6
1.8
17.9
Infosys
Buy
922
1,179
27.8
26.0
14.3
4.4
2.8
19.7
TCS
Buy
2,309
2,700
17.0
27.6
15.5
8.5
3.2
33.1
Tech Mahindra
Buy
418
600
43.4
17.0
12.2
11.4
0.9
20.7
Wipro
Buy
494
583
18.0
18.1
12.1
4.0
1.7
17.6
Source: Company, Angel Research
Company Background
Infosys is the second largest IT company in India, employing over
2,00,364
professionals (as of FY2017). The company services more than 1,000 clients
across various verticals, such as financial services, manufacturing, telecom, retail
and healthcare. Infosys has the widest portfolio of service offerings amongst Indian
IT companies, spanning across the entire IT service value chain - from traditional
Application Development and Maintenance to Consulting and Package
Implementation to Products and Platforms.
April 19, 2017
8
Infosys | 4QFY2017 Result Update
Profit and loss statement (IFRS, consolidated)
Y/E March (` cr)
FY2014
FY2015
FY2016
FY2017
FY2018E FY2019E
Net sales
50,133
53,319
62,441
68,484
73,963
80,619
Cost of revenue
30,767
31,817
37,595
41,550
37,721
41,116
Gross profit
19,366
21,502
24,846
26,934
28,476
31,038
% of net sales
38.6
40.3
39.8
39.3
38.5
38.5
Selling and mktg exp.
2,625
2,941
3,431
3,591
4,068
4,434
% of net sales
5.2
5.5
5.5
5.2
5.5
5.5
General and admin exp.
3,107
3,663
4,292
4,739
5,177
5,643
% of net sales
6.2
6.9
6.9
6.9
7.0
7.0
EBITDA
13,634
14,898
17,123
18,604
19,230
20,961
% of net sales
27.2
27.9
27.4
27.2
26.0
26.0
Dep and amortization
1,374
1,066
1,503
1,703
1,775
1,935
% of net sales
2.7
2.0
2.4
2.5
2.4
2.4
EBIT
12,260
13,832
15,620
16,901
17,455
19,026
% of net sales
24.5
25.9
25.0
24.7
23.6
23.6
Other income
2,669
3,427
3,122
3,080
3,080
3,080
Profit before tax
14,929
17,259
18,742
19,981
20,535
22,106
Provision for tax
4,062
4,929
5,251
5,598
5,750
6,190
% of PBT
27.2
28.6
28.0
28.0
28.0
28.0
PAT
10,648
12,330
13,491
14,383
14,785
15,916
Exceptional item
219
-
-
(30)
-
-
Adj. PAT
10,867
12,330
13,491
14,353
14,785
15,916
EPS (`)
47.3
53.7
59.0
62.5
64.4
69.3
April 19, 2017
9
Infosys | 4QFY2017 Result Update
Balance sheet (IFRS, consolidated)
Y/E March (` cr)
FY2014
FY2015
FY2016
FY2017
FY2018E FY2019E
Current assets
Cash and cash equivalents
25,950
30,367
32,697
22,625
32,430
37,082
Available for sale fin. assets
2,197
874
75
9,970
9,970
9,970
Invest. in certificates of deposit
859
93
103
71
71
71
Trade receivables
8,351
9,713
11,330
12,322
12,426
13,544
Unbilled revenue
2,811
2,845
3,029
3,648
3,648
3,648
Derivative financial instrum.
215
101
116
284
284
284
Prepayments and other CA
2,636
3,296
4,448
4,856
4,290
4,676
Total current assets
43,019
47,289
51,798
53,776
63,119
69,275
Non-current assets
Property, plant and equipm.
7,887
9,125
10,530
11,716
11,916
12,116
Goodwill
2,157
3,091
3,764
3,652
2,157
2,158
Intangible assets
342
638
985
776
342
343
Available for sale fin. Assets
1,252
1,345
1,811
6,382
1,252
1,253
Deferred income tax assets
656
537
536
540
656
657
Income tax assets
1,522
4,089
5,230
5,716
5,716
5,716
Other non-current assets
220
238
735
797
1,793
1,794
Total non-current assets
14,036
19,063
23,591
29,579
23,832
24,037
Total assets
57,055
66,352
75,389
83,355
86,951
93,312
Current liabilities
Trade payables
173
140
386
367
173
174
Derivative financial instrum.
-
3
5
2
-
1
Current income tax liabilities
2,187
2,818
3,410
3,885
3,787
3,788
Client deposits
40
27
28
32
40
41
Unearned revenue
660
1,052
1,332
1,777
660
661
Employee benefit obligations
954
1,069
1,341
1,359
954
955
Provisions
379
478
512
405
379
380
Other liabilties
4,745
5,796
6,225
6,186
5,545
5,546
Total current liabilities
9,138
11,383
13,239
14,013
11,538
11,546
Non-current liabilities
Deferred income tax liabilties
64
160
256
207
64
65
Employee benefit obligations
323
46
115
153
323
324
Other liabilities
-
-
-
-
-
-
Total non-current liabilities
387
206
371
360
387
388
Total liabilities
9,525
11,589
13,610
14,373
11,925
11,934
Equity
Share capital
286
572
1,144
1,144
1,144
1,144
Share premium
3,090
3,090
2,241
2,356
2,356
2,356
Retained earnings
43,584
50,531
57,655
65,056
70,955
77,306
Other components of equity
570
570
739
426
571
572
Total equity
47,530
54,763
61,779
68,982
75,026
81,378
Total liabilties and equity
57,055
66,352
75,389
83,355
86,951
93,312
April 19, 2017
10
Infosys | 4QFY2017 Result Update
Cash flow statement (IFRS, consolidated)
Y/E March (` cr)
FY2014 FY2015
FY2016
FY2017
FY2018E FY2019E
Pre tax profit from operations
12,260
13,832
15,620
16,901
17,455
19,026
Depreciation
1,374
1,066
1,503
1,703
1,775
1,935
Pre tax cash from operations
13,634
14,898
17,123
18,604
19,230
20,961
Other income/prior period ad
2,669
3,427
3,122
3,080
3,080
3,080
Net cash from operations
16,303
18,325
20,245
21,684
22,310
24,041
Tax
4,062
4,929
5,251
5,598
5,750
6,190
Cash profits
12,241
13,396
14,994
16,086
16,560
17,851
(Inc)/dec in current assets
(2,271)
(1,942)
(2,968)
(2,187)
462
(1,504)
Inc/(dec) in current liabilties
2,852
2,245
1,856
774
(2,475)
8
(Inc)/dec in net trade WC
581
303
(1,112)
(1,413)
(2,013)
(1,496)
Cashflow from operating actv.
12,822
13,699
13,882
14,673
14,548
16,355
(Inc)/dec in fixed assets
(2,793)
(2,304)
(2,908)
(2,889)
(1,975)
(2,135)
(Inc)/dec in investments
(1,317)
2,089
789
(9,863)
-
-
(inc)/dec in sale of financial assets
(858)
(93)
(466)
(4,571)
5,130
(1)
(Inc)/dec in deferred tax assets
(583)
(2,448)
(1,140)
(490)
(116)
(1)
Inc/(dec) in other non current liab.
119
(181)
165
(11)
27
1
(Inc)/dec in other non current ass.
(138)
(1,248)
(1,517)
259
933
(3)
Cashflow from investing actv.
(5,570)
(4,185)
(5,077)
(17,565)
3,999
(2,139)
Inc/(dec) in debt
-
-
-
-
-
-
Inc/(dec) in equity/premium
1,099
450
889
515
(218)
(1,040)
Dividends
4,233
5,547
7,364
7,695
8,523
8,524
Cashflow from financing actv.
(3,134)
(5,097)
(6,475)
(7,180)
(8,741)
(9,565)
Cash generated/(utilised)
4,118
4,417
2,330
(10,072)
9,806
4,651
Cash at start of the year
21,832
25,950
30,367
32,697
22,625
32,431
Cash at end of the year
25,950
30,367
32,697
22,625
32,431
37,082
April 19, 2017
11
Infosys | 4QFY2017 Result Update
Key ratios
Y/E March
FY2014
FY2015
FY2016
FY2017
FY2018E FY2019E
Valuation ratio (x)
P/E
19.5
17.2
15.6
14.8
14.3
13.3
P/CEPS
17.3
15.8
14.1
13.2
12.8
11.9
P/BVPS
4.5
3.9
3.4
3.1
2.8
2.6
Dividend yield (%)
1.7
2.0
2.7
2.7
3.5
3.8
EV/Sales
3.6
3.4
2.8
2.6
2.3
2.0
EV/EBITDA
13.3
12.0
10.3
9.5
8.7
7.8
EV/Total assets
3.2
2.7
2.3
2.1
1.9
1.7
Per share data (`)
EPS
47
54
59
63
64
69
Cash EPS
53
58
65
70
72
78
Dividend
16
19
25
25
32
35
Book value
207
239
269
300
327
354
Dupont analysis
Tax retention ratio (PAT/PBT)
0.7
0.7
0.7
0.7
0.7
0.7
Cost of debt (PBT/EBIT)
1.2
1.2
1.2
1.2
1.2
1.2
EBIT margin (EBIT/Sales)
0.2
0.3
0.3
0.2
0.2
0.2
Asset turnover ratio (Sales/Assets)
0.9
0.8
0.8
0.8
0.9
0.9
Leverage ratio (Assets/equity)
1.2
1.2
1.2
1.2
1.2
1.1
Operating ROE
22.4
22.5
21.8
20.9
19.7
19.6
Return ratios (%)
RoCE (pre-tax)
21.5
20.8
20.7
20.3
20.1
20.4
Angel RoIC
43.7
39.5
36.7
33.3
39.2
41.2
RoE
22.9
22.5
21.8
20.8
19.7
19.6
Turnover ratios(x)
Asset turnover (fixed assets)
6.4
5.8
5.9
5.8
6.2
6.7
Receivables days
81
86
84
85
79
78
April 19, 2017
12
Infosys | 4QFY2017 Result Update
Research Team Tel: 022 - 39357800
E-mail: [email protected]
Website: www.angelbroking.com
DISCLAIMER
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offering of securities of the company covered by Analyst during the past twelve months.
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Disclosure of Interest Statement
Infosys
1. Financial interest of research analyst or Angel or his Associate or his relative
No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives
No
3. Served as an officer, director or employee of the company covered under Research
No
4. Broking relationship with company covered under Research
No
Ratings (Based on expected returns
Buy (> 15%)
Accumulate (5% to 15%)
Neutral (-5 to 5%)
over 12 months investment period):
Reduce (-5% to -15%)
Sell (< -15)
April 19, 2017
13