on Friday reported a 5.26 per cent year-on-year (YoY) rise in net profit at Rs 3,802 crore while it dropped 6.8 per cent sequentially.
The revenues of the Bengaluru-headquartered firm rose 14 per cent to Rs 21,803 crore YoY, increasing 1.2 per cent sequentially. In dollar terms, revenues were at $3.13 billion, a sequential growth rate of 2.3 per cent and 10.6 per cent YoY.
An uptick in demand for its digital services, apart from a momentum in the large deal space, prompted the IT services major to increase its revenue guidance for the financial year to 8.5-10 per cent from 7.5-9.5 per cent as guided earlier. READ MORE
The company also reported total contract value (TCV) of deal wins worth $2.7 billion for 1QFY20, its highest ever.
Brokerage Motilal Oswal Financial Services (MOFSL) expects the company to post a compound annual growth rate (CAGR) for FY19-21 of 10.5 per cent in revenue in constant currency (CC) terms and 12.4 per cent in earnings per share (EPS). "The stock price discounts FY20/21 earnings by 19.4/16.6—28 per cent discount to TCS. Our price target of Rs 840 discounts forward earnings by 19x, implying an upside of 15 per cent. Maintain buy," it said in a results review note.