MOSL: Morning India (17/October/18): 1. Infosys; 2. Hero Motocorp; 3. Federal Bank; 4. Oberoi Realty; 5. SRF; 6. Delta Corp; 7. South Ind.Bank; 8. Consumer; 9. Healthcare
MOrning India (17/October/18): 1. Infosys; 2. Hero Motocorp; 3. Federal Bank; 4. Oberoi Realty; 5. SRF; 6. Delta Corp; 7. South Ind.Bank; 8. Consumer; 9. Healthcare
Today’s top research idea
Infosys: Thesis of gestation for revenue-margin duality at play
- In our recent on INFO, we had cited the gestation that one should expect for the company’s revenue-margin duality, given the ongoing investments and the high attrition rate. 2QFY19 performance was a case in point, with CC revenue growth of 4.2% QoQ (8.1% YoY) exceeding our estimate of 3.5% and EBIT margin of 23.7% (flat QoQ despite currency tailwinds) missing our estimate by 40bp.
- The highlight for the quarter (apart from strong CC sequential revenue growth) was deal wins with total contract value (TCV) of more than USD2b – this was on the back of USD1.1b in the previous quarter, which itself was a multi-quarter high.
- Management also cited that some of the deals have a shorter tenure, implying a quick conversion to revenues, boosting near-term visibility (notwithstanding the 2H seasonality).
Piping hot news
₹4,500-crore IL&FS rights issue likely to be pushed back
- The proposed rights issue of troubled Infrastructure Leasing and Financial Services (IL&FS) could be delayed as its new board of directors and shareholders address more immediate concerns. “The rights issue will certainly happen, but the mood right now is to first understand what has been happening in the company and how to revamp at least some of the internal processes,” said two persons familiar with the development, adding that the issue could happen in a few months.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.