MOSL: Morning India (16/July/18): 1. Infosys: In-line; Deals and Digital strong; watching out for BFS and Attrition; 2. Fund Folio; 3. Oil & Gas
MOrning India (16/July/18): 1. Infosys: In-line; Deals and Digital strong; watching out for BFS and Attrition; 2. Fund Folio: AUM rises for 19th consecutive quarter; 3. Oil & Gas: Inclusion of natural gas in GST would be positive; 4. Dr Reddy’s Labs; 5. DCB Bank; 6. Economy
Today’s top research idea
Infosys — In-line; Deals and Digital strong; watching out for BFS and Attrition
- INFO’s 1QFY19 revenue growth of 6% YoY CC and 2.3% QoQ CC was in line with our estimate, and was EBIT margin of 23.7% (-100bp QoQ). Its CC revenue growth guidance of 6-8% and EBIT margin band of 22-24% remain unchanged.
- This comes despite ~20-25bp positive contribution from Wongdoody acquisition and 100bp tailwind to margins from currency.
- However, on the margins front, we expect the company to come slightly ahead of the band at prevailing currency since: [1] It is sticking to its investment budget for the year, and [2] 1Q is seasonally the weakest for margins (seen in last 5 years margins’ too) and INFO is already close to the higher end of the band.
Piping hot news
PNB's NPA recovery in first quarter tops FY'18 level
- Scam-hit PNB's recovery of over Rs 7,700 crore in bad loans during the first quarter in the current fiscal has surpassed the total amount it recovered in the entire 2017-18 financial year, indicating that it has embarked on the turnaround path, the bank's top official has said. The Insolvency and Bankruptcy Code (IBC) resolution process has greatly helped Punjab National Bank, which was hit by nearly USD 2 billion fraud allegedly carried out by jeweller Nirav Modi and his associates, he said.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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