Target price: Rs 1,130
Analysts at IIFL Securities forecast a 2.8% sequential growth in constant currency (cc) revenue (+2.6% cc organic sequential growth) as strength in the telecom vertical offset some softness in the enterprise vertical. Is. Deal wins should remain healthy in Q2, albeit down on a sequential basis.
They expect margins to expand by 40 basis points sequentially as the impact of wage increases is offset by one-time reductions like visa costs and productivity.
The company’s profit after tax (PAT) may grow by 2.5% on a sequential basis.
Key management insights to keep in mind:
- Deal wins, including a ring on the 5G deal
- Revenue and Margin Outlook for H2FY23
- Comments on capital distributions and mergers of acquisitions.
- Supply-side comments on withdrawal trends, subcontracting costs and employee growth
Estimated September 2022
|Revenue (Rs. Million)||130,985||3.1%||20.4%|
|EBIT (Rs. Million)||15,012||7.0%||(9.1)%|
|EBIT margin||11.5%||40 bps||(370) bps|
|Profit After Tax (Rs Million)||11,598||2.5%||(13.4)%|
Source: IIFL Research