Last time Infy reported a double-digit revenue growth was in dollar terms in FY14 when revenue grew 115% ET Bureau October 12, 2019, 13:21 IST ET Intelligence Group: The September 2019 quarter performance of Infosys affirms that the country’s second-largest software company appears to be on course to report a double-digit growth in dollar-denominated revenue for the current fiscal This would be after a gap of six years — the last time it had reported a double-digit growth was back in FY14 when its revenue had grown by 115% Infosys will also likely report higher top line growth than Tata Consultancy Services (TCS), the biggest peerIn the first half of FY20, Infosys increased its revenue by 102% to $6,341 million That puts the company into a comfortable position to clock above 10% growth for the full fiscal This also makes the company’s revised revenue FY20 guidance of 9-10% growth sound too conservative A sequential growth of around 23% in each of the remaining two quarters would help the company march past the upper end of its guidance This looks achievable given the 23% and 25% sequential growth in the June and the September quarters, respectively, and the sustained momentum in order flow from clientsAt a time when TCS is undergoing a deceleration in growth momentum, Infosys appears to be back on the growth track A comparison of revenue on trailing 12-month (TTM) basis shows that revenue growth for Infosys improved to 9

5% in the September quarter from 7.

7% in the year-ago quarter, whereas for TCS, it slowed down to 81% from 102% in the said period

The other factor where Infosys showed improvement was the employee attrition.

After staying high for the past several quarters, it dropped significantly by 170 basis points to 217% in the September quarter A gradual recovery in business momentum is expected to further improve employee retentionIn anticipation of a better performance, the stock rose by 42% on Friday to ?815

7.

Since the company declared results after the market hours, the stock may show more traction when trading begins on Monday At the Friday closing price, the stock is valued at a trailing price-earnings (P/E) multiple of 226, which is similar to a P/E of 23 for TCS
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