Infosys (INFO), India's second largest software exporter Q4FY21 result was in-line with our forecast with a slight miss on revenue front. Q4FY21 revenue grew by 2% QoQ in CC. versus our forecast of +2.6%. EBIT margin declined by 95bps QoQ to 24.5% versus our forecast of 24.4%. EPS of Rs12, was -2.3% /+17.4% QoQ/YoY. Q4FY21 saw large-deal TCV of USD 2.1 billion (net-new being ~52%), said IDBI Capital in its report.

For FY22, INFO has guided for revenue growth of 12% to 14% YoY in CC (higher than our expectation) and EBIT margin between 22% to 24% versus. 24.5% in FY21 (a miss). INFO has also announced share buyback aggregating to Rs 92 billion through open market route at upto Rs 1,750/sh.

"We increase our FY22/23 revenue (in USD) by 2%/1.2%, reduce EBIT margin by 65bps/67bps to 23.8%/24% and cut EPS by 1.5%/3.2%. We now forecast revenue/EPS CAGR of 12.8%/12.7% over FY21-23E. We maintain ACCUMULATE with new TP of Rs 1,505 (vs. Rs 1,554 earlier) based on 26x FY23E," added the broking firm.

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