Strong order inflow, improved guidance: Infosys investors have lot to cheer

At 17 times its FY21 earnings, firm is trading at 26% discount to rival TCS

Infosys investors have multiple reasons to be happy about. A decent December quarter (Q3) performance, strong order inflows, improved guidance and more importantly clean chit for the management on whistlebower complaint are positives going ahead.

Its performance in Q3 was broadly similar to what analysts had estimated with reported revenue and net profit growth higher by two per cent and 10.6 per cent sequentially. Even in constant currency (CC) terms, Infosys’ sequential revenue growth of 1 per cent in Q3, was at par with the analysts’ expectations of 0.9-2 per cent. However, EBIT margin of 21.9 per cent marginally missed