Document 6562281

Transcription

Document 6562281

2QFY2015 Result Update | IT
October 11, 2014
Infosys
BUY
Performance highlights
CMP
Target Price
(` cr)
Net revenue
EBITDA
EBITDA margin (%)
PAT
2QFY15
1QFY15
% chg (qoq)
2QFY14
% chg (yoy)
13,342
3,774
28.3
3,096
12,770
3,441
26.9
2,886
4.5
9.7
0.0
7.3
12,965
3,390
26.1
2,626
2.9
11.3
178bp
17.9
`3,889
`4,700
Investment Period
12 Months
Stock Info
IT
Sector
Source: Company, Angel Research
Market Cap (` cr)
2,23,319
For 2QFY2015, Infosys posted a 3.1% sequential growth in USD revenues to
Net debt (` cr)
(30,250)
US$2,201mn V/s an expected US$2,193mn. In USD constant currency (CC) terms,
Beta
the company posted a strong 3.9% qoq growth in revenue. On the operating front,
52 Week High / Low
the EBIT margins came in at 26.1% V/s an expected 24.6% (and V/s 25.1% in
Avg. Daily Volume
1QFY2015) on account of improved productivity. Consequently, the PAT came in at
Face Value (`)
`3,096cr V/s an expected `2,948.9cr, a rise of 7.3% qoq. Going forward, the
BSE Sensex
company has maintained its future USD revenue growth guidance for FY2015 at
Nifty
7-9% and EBIT margins to be sustained at these (2QFY2015) levels. Thus, we
Reuters Code
INFY.BO
maintain our Buy rating on the stock with a target price of `4,700.
Bloomberg Code
INFY@IN
0.4
3,909/2,894
84,739
5
26,297
7,860
Quarterly highlights: The company posted a 3.1% sequential growth in USD revenues
to US$2,201mn V/s an expected US$2,193mn. In USD constant currency (CC) terms,
Shareholding Pattern (%)
the company posted a strong 3.9% qoq revenue growth V/s an 1.5% qoq growth in
Promoters
15.9
MF / Banks / Indian Fls
14.7
FII / NRIs / OCBs
43.3
Indian Public / Others
26.1
revenue in 1QFY2015. Among key geographies, Europe grew by 6.5% qoq in USD
CC terms, while USA grew by 3.2% qoq in USD CC terms. The ECS (Electricity,
Communications and Services) domain posted the highest growth of 8.8% qoq in
USD CC terms. On the operating front, the EBIT margins came in at 26.1% V/s an expected
24.6% (and V/s 25.1% in 1QFY2015) on account of improved productivity. Consequently,
the PAT came in at `3,096cr (V/s an expected `2,948.9cr), a rise of 7.3% qoq.
Abs. (%)
3m
1yr
3yr
Outlook and valuation: Going forward, the company has maintained its future USD
revenue growth guidance for FY2015 at 7-9% and EBIT margins to be sustained at
these (2QFY2015) levels. Over the next 2-3 years, the company has guided towards
moving into a trajectory of 15-18% sales growth rate with EBIT margin of 26%-28%.
In terms of valuation, the stock currently trades cheap at 16.5x FY2016E earnings, ie
at a discount to its peer like TCS, which we believe can narrow down once the growth
picks up in Infosys. We maintain our Buy rating on the stock.
Sensex
3.6
29.7
58.8
Infosys
18.1
24.5
50.1
Key financials (Consolidated, IFRS)
Y/E March (` cr)
FY2013
FY2014
FY2015E
FY2016E
Net sales
40,352
50,133
55,347
61,546
% chg
Adj. net profit
% chg
EBITDA margin (%)
19.6
24.2
10.4
11.2
9,421
10,867
12,204
13,465
13.3
15.4
12.3
10.3
28.6
27.2
27.3
27.8
EPS (`)
164.9
186.4
213.4
235.4
P/E (x)
23.6
20.9
18.2
16.5
P/BV (x)
5.6
4.7
4.0
3.4
RoE (%)
23.7
22.9
22.0
20.8
RoCE (%)
22.5
21.5
20.5
20.1
5.0
3.9
3.4
2.9
17.3
14.3
12.3
10.5
EV/Sales (x)
EV/EBITDA (x)
Please refer to important disclosures at the end of this report
Sarabjit kour Nangra
+91 22-39357800 Ext: 6806
sarabjit@angelbroking.com
1
Infosys | 2QFY2015 Result Update
Exhibit 1: 2QFY2015 performance (IFRS, consolidated)
(` cr)
2QFY15
1QFY15
% chg (qoq)
2QFY14
% chg (yoy)
1HFY2015
1HFY2014
% chg (yoy)
13,342
12,770
4.5
12,965
2.9
26,112
24,232
7.8
Cost of revenue
7,910
8,046
(1.7)
8,050
(1.7)
15,956
15,050
6.0
Gross profit
5,432
4,724
15.0
4,915
10.5
10,156
9,182
10.6
SG&A expenses
1,658
1,283
29.2
1,525
8.7
2,941
2,809
4.7
EBITDA
3,774
3,441
9.7
3,390
11.3
7,215
6,373
13.2
291
230
26.7
334
(12.8)
521
653
(20.2)
3,483
3,211
8.5
3,056
14.0
6,694
5,720
17.0
877
829
5.8
510
72.0
1,706
1,087
PBT
4,360
4,040
7.9
3,566
22.3
8,400
6,807
23.4
Income tax
1,264
1,154
9.5
940
34.5
2,418
1,807
33.8
-
-
-
219
Reported PAT
3,096
2,886
7.3
2,407
28.6
5,982
4,780
25.1
Adjusted PAT
3,096
2,886
7.3
2,626
17.9
5,982
5,000
19.6
EPS
54.2
50.5
7.3
46.0
17.9
104.7
87.5
19.6
Gross margin (%)
40.7
37.0
37.9
187bp
38.9
37.9
EBITDA margin (%)
28.3
26.9
26.1
178bp
27.6
26.3
EBIT margin (%)
26.1
25.1
23.6
193bp
25.6
23.6
PAT margin (%)
21.8
21.2
19.5
28bp
21.5
19.7
Net revenue
Depreciation
EBIT
Other income
Exceptional item
219
Exhibit 2: 2QFY2015 – Actual vs Angel estimates
(` cr)
Net revenue
Actual
Estimate
% Var.
13,342
13,279
0.5
28.3
27.4
89bp
3,096
2,949
5.0
EBITDA margin (%)
PAT
Revenue in line with expectation
The company posted a 3.1% sequential growth in USD revenues to US$2,201mn
V/s an expected US$2,193mn. In INR terms, revenue came in at `13,342cr
(V/s an expected `13,279cr), up 4.5% qoq.
In USD constant currency (CC) terms, the company posted a strong 3.9% qoq
growth in revenue V/s a 1.5% qoq revenue growth in 1QFY2015. Among key
geographies, Europe grew by 6.5% qoq, while USA grew by 3.2% qoq, both in
USD CC terms. India and ROW posted a 4.0% qoq decline and 4.2% qoq growth,
both in USD CC terms, respectively. In terms of domains, the Financial Services
industry grew by 2.0% qoq in CC terms while Manufacturing grew by 4.5% qoq in
USD CC terms. Among domains ECS (Electricity, Communications and Services)
posted the highest growth of 8.8% qoq during the period in USD CC terms.
Overall, the IT services volume growth came in at 3.0% qoq, driven by 1.1% qoq
on site volume growth, along with a 3.8% qoq offshore volume growth, which
enabled a 3.9% qoq growth in USD terms.
October 11, 2014
2
Exhibit 3: Trend in volume qoq growth (Effort wise)
Exhibit 4: Trend in volume and USD revenue growth (qoq)
Industry-wise, the revenue from Financial Services and Insurance (FSI), the
company’s anchor vertical contributing 32.8% to revenue, grew by 1.3% qoq,
driven by the insurance vertical, which grew by 3.2% qoq. In CC terms, revenue
from FSI grew by 2.0% qoq.
The Manufacturing industry vertical (contributed 23.3% to revenue) registered a
3.6% qoq growth in revenues. In CC terms, the revenue from this vertical grew by
4.5% sequentially. The company is seeing IT spending coming in the
Manufacturing industry segment from clients in terms of work related to
harmonizing processes and transformation to gain cost efficiency and simplicity.
The Management indicated that traction in Manufacturing sub-segments such as
aerospace and auto is good for services like digitization, expansion and connected
vehicles while the company expects budgets to decline for the hi-tech industry
segment. In hi-tech, the Management believes that fall in PC sales and reduction in
overall capex is likely to negatively impact spending in CY2014.
The Retail, CPG and Logistics (RCL) segment (contributed 23.4% to revenue)
reported a 1.5% qoq growth in revenue. The Life Sciences and Healthcare vertical
October 11, 2014
3
posted a qoq growth of 5.4% and 3.2% respectively. The growth in Retail & CPG
de-grew by 0.1% qoq. In CC terms, the revenue from RCL grew by 2.0% qoq.
The Energy Utilities, Communications & Services (ECS) segment (contributed 20.5%
to revenue) reported a strong 7.9% qoq growth in revenue, with Energy and
Utilities posting a robust performance. Other sub verticals like Communication &
Services reported a robust growth of 5.6% qoq.
Exhibit 5: Growth trend in industry segments (Reported basis)
Particulars
% to revenue
% growth qoq
% growth yoy
FSI
32.8
1.3
4.6
Banking and financial services
26.8
0.9
5.4
6.0
3.2
1.5
Manufacturing
23.3
3.6
7.0
RCL
23.4
1.5
3.0
Retail and CPG
15.3
(0.1)
3.8
Transport and logistics
1.5
3.2
(11.2)
Life Sciences
4.7
5.4
8.9
Healthcare
1.9
3.2
(3.6)
Insurance
ECS
20.5
7.9
13.7
Energy and utilities
5.5
11.3
14.9
Communication and services
8.9
5.6
14.2
Others
6.1
8.5
12.0
In terms of geographies, revenues from North America grew 3.2% qoq in CC
terms, while other geographies such as Europe and ROW grew 6.5% qoq and
4.2% qoq, both in CC terms, respectively. India’s performance was poor during
the quarter, posting a 4.0% qoq dip in revenue in CC terms.
Exhibit 6: QoQ USD Growth trend in geographies (CC basis)
October 11, 2014
4
Hiring and utilization
Infosys added 14,255 gross employees in 2QFY2015, of which 4,774 were lateral
additions. The net addition number for the quarter stood at 4,127. Attrition (for
standalone) remained persistently high in 2QFY2015, increasing to 20.1% (LTM),
up from 19.5% in 1QFY2015 and at its highest in recent history. The attrition rate
in the company has been on a continue rise. For 2QFY2015, the attrition rate is
around 20.1%. We believe unless the company reins in high attrition rate, the
recent measures undertaken by the company to improve employee productivity
would not fructify fully.
The Management indicated that hiring, going ahead, will be based on business
needs and the company is currently more focused towards improving the utilization
level. The company is trying to inch up its utilization level going forward, which
could act as one of the margin levers.
Exhibit 7: Employee metrics
2QFY14
3QFY14
4QFY14
1QFY15
2QFY15
12,168
6,682
10,997
11,506
14,255
Net addition
2,964
(1,823)
2,001
879
4,127
Gross lateral emp. addition
3,806
3,333
2,100
3,954
4,774
17.3
18.1
18.7
19.5
20.1
Gross addition
Attrition – LTM basis (%)*
Source: Company, Angel Research, Note-* excluding subsidaries
With the company focusing on improving its utilization level, the utilization rate
during the quarter, including trainees, grew by 40bp qoq to 75.2%, while
excluding trainees it grew by 220bp qoq to 82.3%.
Exhibit 8: Trend in utilization (Services and consulting + Projects)
Margins expand
On the operating front, the EBIT margins came in at 26.1% V/s an expected 24.6%
(and V/s 25.1% in 1QFY2015 and 23.6% in 2QFY2014). The same was led by
operational efficiency with inch up in utilization level to 75.2% (V/s 73.1% in
2QFY2014) and sequential decline in employee costs. In addition, the
Management indicated that the operating margin for FY2015 is expected to be in
the same range as in FY2014.
October 11, 2014
5
Exhibit 9: Trend in EBIT margin
Client pyramid
Infosys added 49 new clients (gross additions) during the quarter, taking its
total active client base to 912. The client addition was across the board. The
company had added 4 more clients in the US$50-100mn, while adding 5 more in
the US$100-200mn and adding almost 8 more in the US$200-300mn group.
The growth of the company during the quarter has been aided by the repeat
business, whereas the rest of the accounts remained steady.
Exhibit 10: Client metrics
Particulars
2QFY14
3QFY14
4QFY14
1QFY15
2QFY15
Top client (% of revenue)
3.9
3.7
3.6
3.4
3.4
Gross Client addition
68
54
50
61
49
Active client
873
888
890
910
912
US$1mn–5mn
248
269
269
285
386
US$5mn–10mn
75
78
84
87
99
US$10mn–20mn
60
60
57
35
67
US$20mn–50mn
46
47
49
19
40
US$50mn–100mn
25
26
29
12
16
US$100mn–200mn
12
11
10
9
14
US$200mn-300mn
3
3
2
2
10
1
1
1
1
US$300mn plus
-
October 11, 2014
6
Investment arguments
Guidance reinforced: Infosys has reinforced its USD revenue growth guidance of
7-9% which was given in 4QFY2014, which should result in revenue growth of
2.3-3.5% on a qoq basis for the rest of the quarters. We believe that this is a
conservative number from the company and we expect the company to post
~10.4% USD revenue growth in FY2015. In INR terms, the company has given a
revenue guidance of 5.6-7.6% (assuming USD/INR rate at `60). Over the next 2-3
years, the company has guided towards moving into a trajectory of 15-18% growth
rate with EBIT margins at 26%-28%.
Deal pipeline healthier: The Management commentary indicated that though the
deal pipeline seems to be better than what it was the same time last year, the
company continues to remain focused on reviving growth momentum. But the
company is witnessing sporadic project cancellations or ramp downs in some of its
deals. While the improvement in IT spending outlook for CY2014 does bode well
for the FY2015E revenue outlook of the sector in general and Infosys in specific,
we believe Infosys will continue to lag behind its tier-I peers like TCS and HCL Tech
on revenue growth. During the quarter, Infosys signed 4-5 large deals with TCV
worth US$700mn+ similar to 4QFY2014, and indicated a better spending trend
in key verticals like Financial Services, Retail and Manufacturing although Telecom
and Hi tech verticals continue to be challenging. We expect Infosys to post a 10.4%
USD revenue growth in FY2015. Over FY2014-16E, we expect USD and INR
revenue to grow at a CAGR of 10.8% and 10.8%, respectively.
Operating margin likely to be range bound: The Management maintained its
stance that the company is right now focused on growth (at least for the next
couple of quarters) and this may lead to sacrifice in margins in the near term. The
operating margin is subject to tailwinds on a stable rupee, further improvement in
utilization rates and cost optimization drive running in the company, though it has
headroom to increase its utilization level by ~300bp to be comparable with peers
and this, in turn, will assist in increasing operating margins further. Going ahead,
given a stable rupee, higher S&M spends, and wage hikes in FY2015, we expect
the EBIT margin to remain at 24.5% in FY2015 and 25.0% in FY2016 from 24.5%
in FY2014. Over FY2014–16E, we expect an EBIT CAGR of 12.0%.
Dividend policy changed: Infosys stated that the company's current policy was to
pay dividends up to 30% of post-tax profits. The board has decided to increase the
dividend pay-out ratio to up to 40% of post-tax profits with effect from FY2014.
The board of directors recommended a final dividend of `43 per share for
FY2014. During the quarter the company has also declared an interim dividend of
`30 and also 1:1 bonus for all shareholders of the company.
Outlook and valuation
Going forward, the company has maintained its future USD revenue growth
guidance for FY2015 at 7-9% and EBIT margins to be sustained at these
(2QFY2015) levels in a narrow band. Over the next 2-3 years, the company has
guided towards moving into a trajectory of 15-18% growth rate with EBIT margins
of 26%-28%. On the valuation front, the stock is cheap at current valuations of
16.5x FY2016E earnings, ie at a discount to its peer like TCS, which we believe
October 11, 2014
7
can narrow down once the growth picks up in Infosys. We recommend a Buy on
the stock with a target price of `4,700.
Exhibit 11: Key assumptions
Parameters
FY2015
FY2016
Revenue growth – USD terms (%)
10.4
11.2
USD–INR rate
60.0
60.0
Revenue growth – INR terms (%)
10.4
11.2
EBITDA margin (%)
Tax rate (%)
EPS growth (%)
27.3
27.0
12.3
27.8
27.0
10.3
Exhibit 12: One-year forward PE (x)
Exhibit 13: Recommendation summary
Company
Reco
CMP
Tgt. price
Upside
FY2016E
FY2016E
FY2014-16E
FY2016E
FY2016E
(`)
HCL Tech
Buy
1,739
(`)
(%)
EBITDA (%)
P/E (x)
EPS CAGR (%)
EV/Sales (x)
RoE (%)
1,968
13.2
24.0
15.9
11.7
2.5
23.6
Infosys
Buy
3,889
4,700
20.8
27.8
16.5
11.3
2.9
20.8
TCS
Buy
2,679
Tech Mahindra
Buy
2,339
-
-
29.8
21.4
13.4
4.6
36.0
2,788
19.2
22.8
14.3
14.7
1.8
23.0
Wipro
Buy
585
697
19.1
23.7
14.3
14.0
2.0
20.3
Company Background
Infosys is the second largest IT company in India, employing over 1,60,000
professionals (as on FY2014). The company services more than 900 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.
October 11, 2014
8
Profit and loss statement (IFRS, consolidated)
Y/E March (` cr)
FY2012
FY2013
FY2014
FY2015E
FY2016E
Net sales
33,733
40,352
50,133
55,347
61,546
Cost of revenue
18,877
24,158
30,767
37,051
42,034
Gross profit
14,856
16,194
19,366
21,475
24,003
% of net sales
Selling and mktg exp
% of net sales
General and admin exp.
% of net sales
EBITDA
40.1
38.6
38.8
39.0
2,034
2,625
2,767
3,077
5.2
5.0
5.2
5.0
5.0
2,390
2,609
3,107
3,598
3,816
7.1
6.5
6.2
6.5
6.2
10,709
11,551
13,634
15,110
17,110
% of net sales
31.7
28.6
27.2
27.3
27.8
Dep. and amortization
931
1,122
1,374
1,550
1,723
2.8
2.8
2.7
2.8
2.8
9,778
10,429
12,260
13,560
15,386
% of net sales
EBIT
% of net sales
29.0
25.8
24.5
24.5
25.0
Other income
1,904
2,359
2,669
3,157
3,058
Profit before tax
11,683
12,788
14,929
16,717
18,445
Provision for tax
3,368
3,367
4,062
4,514
4,980
28.8
26.3
27.2
27.0
27.0
8,315
9,421
10,648
12,204
13,465
-
-
219
-
-
Adj. PAT
8,315
9,421
10,867
12,204
13,465
EPS (`)
145.5
164.9
186.4
213.4
235.4
% of PBT
PAT
Exceptional item
October 11, 2014
44.0
1,757
9
Balance sheet (IFRS, consolidated)
Y/E March (` cr)
FY2012
FY2013
FY2014
FY2015E
FY2016E
20,591
21,832
25,950
34,075
40,957
Current assets
Cash and cash equivalents
Available for sale financial assets
32
1,739
2,197
2,197
2,197
345
-
859
859
859
Trade receivables
5,882
7,083
8,351
8,275
10,122
Unbilled revenue
1,873
2,435
2,811
2,808
3,434
-
101
215
215
215
Investment in certificates of deposit
Derivative financial instruments
Other current assets
1,523
2,123
2,636
2,859
3,497
Total current assets
30,246
35,313
43,019
51,287
61,281
5,409
6,468
7,887
8,004
7,657
Goodwill
993
1,976
2,157
2,157
2,157
Intangible assets
173
368
342
342
342
12
394
1,252
1,252
1,252
Non-current assets
Property, plant and equipment
Available for sale financial assets
Deferred income tax assets
Income tax assets
Other non-current assets
Total non-current assets
316
503
656
656
656
1,037
1,092
1,522
1,622
1,722
162
237
220
926
1,632
8,102
11,038
14,036
14,959
15,418
38,348
46,351
57,055
66,247
76,699
Trade payables
23
189
173
173
173
Derivative financial instruments
42
-
-
-
-
1,054
1,329
2,187
2,987
3,787
15
36
40
40
40
Unearned revenue
545
823
660
660
660
Employee benefit obligations
498
614
954
954
954
Provisions
133
213
379
379
379
Other liabilities
2,456
3,082
4,745
5,145
5,545
Total current liabilities
4,766
6,286
9,138
10,338
11,538
Non-current liabilities
-
-
-
-
-
Deferred income tax liabilities
12
119
64
64
64
Employee benefit obligations
109
149
323
323
323
Total assets
Current liabilities
Current income tax liabilities
Client deposits
Other liabilities
Total non-current liabilities
Total liabilities
-
-
-
-
-
121
268
387
387
387
4,887
6,554
9,525
10,725
11,925
286
286
286
286
286
Equity
Share capital
Share premium
3,089
3,090
3,090
3,090
3,090
29,816
36,114
43,584
51,576
60,828
270
307
570
570
570
Total equity
33,461
39,797
47,530
55,522
64,774
Total Liabilities and Equity
38,348
46,351
57,055
66,247
76,699
Retained earnings
Other components of equity
October 11, 2014
10
Cash flow statement (IFRS, consolidated)
Y/E March (` cr)
Pre-tax profit from operations
Depreciation
Pre tax cash from ops.
Other income/prior period ad
Net cash from operations
FY2013
FY2014
FY2015E
FY2016E
9,778
10,429
12,260
13,560
15,386
931
1,122
1,374
1,550
1,723
10,709
11,551
13,634
15,110
17,110
1,904
2,359
2,669
3,157
3,058
12,614
13,910
16,303
18,267
20,168
Tax
3,368
3,367
4,062
4,514
4,980
Cash profits
9,246
10,543
12,241
13,753
15,188
(2,399)
(2,464)
(2,271)
(143)
(3,112)
Inc/(dec) in current liab.
1,125
1,520
2,852
1,200
1,200
(Inc)/dec in net trade WC
(1,274)
(944)
581
1,057
(1,912)
(Inc)/dec in current assets
Cashflow from operating actv.
7,972
9,599
12,822
14,810
13,276
(Inc)/dec in fixed assets
(1,496)
(2,181)
(2,793)
(1,667)
(1,376)
(Inc)/dec in investments
(233)
(1,362)
(1,317)
-
-
(inc)/dec in sale of financial assets
11
(382)
(858)
-
-
(Inc)/dec in deferred tax assets
18
(242)
(583)
(100)
(100)
Inc/(dec) in other non-current liab.
(198)
147
119
-
-
(Inc)/dec in other non-current ass.
8
(1,253)
(138)
(706)
(706)
(1,890)
(5,273)
(5,570)
(2,473)
(2,182)
Cashflow from investing activities
Inc/(dec) in debt
Inc/(dec) in eq./premium
Dividends
-
-
-
-
-
(1,155)
(280)
1,077
(0)
-
1,002
2,805
4,211
4,212
4,212
(2,157)
(3,085)
(3,134)
(4,212)
(4,212)
Cash generated/(utilized)
3,925
1,241
4,118
8,125
6,882
Cash at start of the year
16,666
20,591
21,832
25,950
34,075
Cash at end of the year
20,591
21,832
25,950
34,075
40,957
Cashflow from financing activities
October 11, 2014
FY2012
11
Key ratios
Y/E March
FY2012
FY2013
FY2014
FY2015E
FY2016E
P/E
26.7
23.6
20.9
18.2
16.5
P/CEPS
24.1
21.1
18.2
16.2
14.6
P/BVPS
6.6
5.6
4.7
4.0
3.4
Dividend yield (%)
0.4
1.1
1.6
1.6
1.6
Valuation ratio (x)
EV/Sales
6.0
5.0
3.9
3.4
2.9
18.9
17.3
14.3
12.3
10.5
5.3
4.3
3.4
2.8
2.3
EPS
146
165
186
213
235
Cash EPS
162
184
214
240
266
Dividend
15
42
63
63
63
585
696
831
971
1132
Tax retention ratio (PAT/PBT)
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
EBIT margin (EBIT/sales)
0.3
0.3
0.2
0.2
0.3
Asset turnover ratio (sales/assets)
0.9
0.9
0.9
0.8
0.8
EV/EBITDA
EV/Total assets
Per share data (`)
Book value
DuPont analysis
Leverage ratio (assets/equity)
1.1
1.2
1.2
1.2
1.2
24.9
23.7
22.4
22.0
20.8
RoCE (pre-tax)
25.5
22.5
21.5
20.5
20.1
Angel RoIC
56.3
45.8
43.7
46.6
47.1
RoE
24.9
23.7
22.9
22.0
20.8
Asset turnover (fixed assets)
4.2
3.7
3.6
3.7
4.0
Receivables days
84
86
81
73
80
Operating ROE
Return ratios (%)
Turnover ratios (x)
October 11, 2014
12
Research Team Tel: 022 - 39357800
E-mail: research@angelbroking.com
Website: www.angelbroking.com
DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make
such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies
referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and
risks of such an investment.
Angel Broking Pvt. Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make
investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this
document are those of the analyst, and the company may or may not subscribe to all the views expressed within.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot
testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.
While Angel Broking Pvt. Limited endeavours to update on a reasonable basis the information discussed in this material, there may be
regulatory, compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Angel Broking Pvt. Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking
or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or
in the past.
Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from
or in connection with the use of this information.
Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the
latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Pvt. Limited and its affiliates may
have investment positions in the stocks recommended in this report.
Disclosure of Interest Statement
1. Analyst ownership of the stock
2. Angel and its Group companies ownership of the stock
3. Angel and its Group companies' Directors ownership of the stock
4. Broking relationship with company covered
Infosys
No
No
Yes
No
Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors
Ratings (Returns):
October 11, 2014
Buy (> 15%)
Reduce (-5% to -15%)
Accumulate (5% to 15%)
Sell (< -15%)
Neutral (-5 to 5%)
13

Document 6562281

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