Infosys has delivered muted performance during Q4FY11 with 1.4% QoQ fall in volume. Considering the improvement in global demand environment and increased deals on the transformational & front, the numbers are disappointing. The FY12 Rupee EPS growth guidance is also quite low. Infosys has hired 8,930 people including 3,591 laterals during Q4FY11 and is expected hire about 45,000 during FY 12. With IT Industry Growth expectation of around 18% and global IT budgets already being released with a reasonable growth, we believe its FY12 EPS guidance is much lower than our expectations. Hence, we have reduced our FY12E APAT estimates while largely have maintained our FY12 Revenue estimates. We have also introduced our FY13 estimates. Going forward, we expect its FY12E & FY13E Revenues to grow by 19.3% & 15.1% to Rs. 328,110 mn & Rs. 377,608 mn respectively, while expect its APAT to increase by 13.5% & 13.0% to Rs. 77,432 mn & Rs. 87,522 mn in FY12E & FY13E respectively. The CMP of Rs. 2,989 discounts its FY12E & FY13E Earnings of Rs. 135.1 & Rs. 152.7 by 22.1x & 19.6x respectively.
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