LIFE MAKE BETTER

Infosys Q1 FY24 Results Review: Unveiling Revenue Guidance Cut and Market Impact

noreply@blogger.com (Yogi) — Fri, 21 Jul 2023 00:05:00 -0700

Review of Infosys Q1 Results: Delivering a Solid Blow, India's second-largest IT services company announced its Q1FY24 results, reducing its FY24 revenue guidance in constant currency (CC) from 1.0% - 3.5% compared to the previous quarter's 4% - 7%. The guidance cut was primarily due to lower-than-expected volume and discretionary spending, delayed decision-making, and setbacks in anticipated mega deals.

On Friday, the stock tumbled 9% on the BSE, closing at INR 1,311.60.

Analysts tracking the stock have mixed views, but they express concern over the significant revenue cut in the fiscal year 2014. For instance, Motilal Oswal Securities stated in their income review note, "While the guidance cut is concerning and should have a negative impact on the share price in the short term (partly due to the 11% increase in the past month), we view the miss as an operational issue rather than a structural one as the previous guidance was too optimistic in the current environment."

Brokerages mentioned that despite a reduction of 325 basis points in the guidance, they are comfortable with Infosys' current 1Q-4QE revenue growth run rate estimate, which is similar to their peers at 6% YoY CC, despite FY24E revenue growth being 2% lower.

Brokerages have set a target price of INR 1,600 (10% above yesterday's closing) and issued a "Buy" call on the stock.

In contrast, IDBI Capital has maintained a "Hold" rating on the stock. In their review, they wrote, "Infosys is grappling with adverse conditions mainly due to a slowdown in discretionary spending in its major customer base. Additionally, there will be pressure on revenue due to the weakness in retail, financial services, high-tech, and communication (constituting 60% of the portfolio)."

Despite winning robust large deals (up to $2.3 billion, 56% of net new), analysts expect delays in conversions, project ramp-downs, and ramp-ups to impact revenue growth. "With improvement in macros, the company can witness better growth in the long run. Therefore, we expect a 9.5% annual increase in FY25E revenue," they said, setting a target price of INR 1,440.

Nirmal Bang Securities is also bearish on the stock and the sector. Their Q1 result review report stated, "We have been negative on the stock and sector for the last 15 months. We are still cautious, as we believe the worst situation lies ahead of us, not behind."

The brokerage is skeptical that FY2015 revenue will be strong as expected due to the American slowdown, which is likely to return in 2024. They have reiterated their "Sell" call on Infosys with a slightly higher target price (TP) of INR 1,206, raising the valuation to June 2025 EPS while keeping the multiple at 17.4x, which is a 10% discount to TCS.

Manipur Violence LIVE Updates: CM Vows 'Efforts for Death Penalty' in Viral Video Case

noreply@blogger.com (Yogi) — Thu, 20 Jul 2023 09:48:00 -0700

This week, ethnic tensions in Manipur have attracted a lot of attention after a video of an assault on two women went viral.The victims, who were allegedly Zou tribal members, were paraded while naked, subjected to sexual assault, and in some cases, gang raped, according to reports.However, Chief Minister N. Biren Singh stated on Wednesday that this was not an isolated incident.

Singh told India Today, "Such incidents are happening here frequently, which is why the internet has been banned in Manipur for now."

Since the eruption of violence on May 3, internet services in Manipur have been under a ban periodically, with the current ban in place until July 20. The Manipur High Court had earlier this month issued an order that partially lifted the internet blackout and instructed the state government to carry out a physical verification to see whether it would be possible to offer internet access on mobile devices while maintaining "the safety of citizens and property." On July 25, the case will be heard.

Opposition leaders have also connected the circulating video to the existing internet ban.

In a lengthy Twitter post, Congress leader Jairam Ramesh aired his opinions, writing, "The rest of India had no idea that such a horrific incident took place in Manipur due to the ongoing internet ban."

The Chief Minister condemned the heinous crime, declaring that his government would not remain silent about it. He emphasized that the perpetrators are eligible for "capital punishment."

Jio Financial Demerger: Stock Price Surpasses Street Estimates

noreply@blogger.com (Yogi) — Thu, 20 Jul 2023 00:09:00 -0700

RIL's Today's Separation from RIL is Confirmed. It will be renamed as Jio Financial Services (JFS) and listed on the exchanges at a later date.

RIL stock is currently listed at INR 261.8 per share, and Nuwama Research expects Nifty 50 index passive trackers to sell approximately 90 million shares, equivalent to about $290 million.

At the end of a special trading session on the stock exchanges, shares of Reliance Strategic Investments Limited (RIL) were acquired at INR 261.85, significantly higher than analysts' estimates of INR 160-190.

This would value RIL at approximately INR 1.45 trillion. RIL is preparing to separate from RIL today, July 20. It will be renamed as Jio Financial Services (JFS) and listed on the exchanges at a later date.

RIL stock closed at INR 2589 on the BSE, down from its previous closing price of INR 2853 per share.

The company will announce its earnings for the June quarter on July 21. With the financial business of RIL being transferred to JFS, it will hold a 6.1% stake in Reliance Industries.

As per the scheme of arrangement, RIL shareholders will receive one share of Reliance Strategic Investments for each of their one share.

However, investors should note that this new stock is not currently tradable. It will remain stable at its current value until the listing date is announced. Three days after its listing, it will be removed from Nifty 50.

The company primarily operates in the NBFC market and credit markets. It has plans to expand its operations in insurance, digital payments, and asset management sectors.

Isha Ambani has been appointed as a non-executive director on the board of JFS, while former ICICI executive Hitesh Sethia will take on the role of CEO and MD. These appointments are expected to strengthen the company's leadership team and boost its growth initiatives in various sectors.