The Q3FY2017 result of Infosys was better than expected on the EBIT and Net
Profit fronts. The company posted a 1.4% sequential de-growth in USD revenues
to US$2,551mn v/s US$2,561mn expected. On Constant Currency (CC) terms,
de-growth was 0.3%. The volume growth during the quarter was 0.2% qoq. On
EBIT front, the company reported an EBIT margin of of 25.1% v/s 24.5%
expected, up 20bps qoq. Consequently, PAT, came in at Rs3,708cr v/s Rs3,569cr
as expected, a growth of 2.8% qoq. On guidance front, FY2017 revenue
guidance was revised to 8.4% – 8.8% from 8.0% – 9.0% in constant currency. We
maintain our BUY rating on the stock, with a Target Price of Rs1,249.

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