IT major Infosys zoomed higher after the company reported a good Q1 result with strong management guidance coming in. Q1 margins are up 150 basis points and Q1 deal wins holding steady around $1.8 billion.
Company's CEO and managing director Salil Parekh says economic uncertainties in several markets remain and guides for revenue growth of around 0-2 percent for this year.
Sandip Agarwal of Edelweiss Securities assesses Infosys' Q1 performance.
“We are very clear that we are on a very big tech upcycle which will continue for 3-4 years at least and the reason is the online activity which has short up because of the pandemic.”
“Now from the perspective of the segment, I think cloud which is partly portion of IMS as well and the digital services these are the two spaces which will do maximum gain going forward. Players who are in these space are Tata Consultancy Services (TCS) and Infosys are bigger players in the digital side and HCL Technologies is the player in the IMS side on the cloud side. I believe that these three in the largecaps will do wonders in coming 2-3 years.”