Will there be more upside for Infosys stock after its Q1 earnings? Mahantesh Sabarad answers
«This is the best growth they have achieved in several quarters, at least if not for all the quarters, at least for the first quarter start of the year, so this is a great number that they have reported. But I have not seen what their guidance is actually for the year ahead,» says Mahantesh Sabarad, Independent Market Expert.
Is it just me who is pleasantly surprised with the numbers or is it you as well who is giving me company here?
Mahantesh Sabarad: Yes, I think the top line growth of 2.5% constant currency YoY growth and 3.6% quarter-on-quarter is a great surprise because if I am right 3.6% constant currency quarter-on-quarter growth has not been achieved for the past six-seven quarters. This is the best growth they have achieved in several quarters, at least if not for all the quarters, at least for the first quarter start of the year, so these are great numbers that they have reported.
So, they are now talking about a 3% to 4% uptick in terms of the revenue growth, which is of course not a big number by itself, but the fact that they have gone ahead from 1% to 3% growth earlier guidance, it now stands at 3% to 4%, that itself is meaningful because they have increased the lower end of the band by 200 basis point and even the upper band has been raised by almost 100 basis point though it is coming with the same margins, so they are continuing with the 20% to 22%. But are you expecting big upgrades to come by on the kind of number beat that we have seen from Infosys?
Mahantesh Sabarad: Yes, of course, the
