Motilal Oswal Financial Services

20 April 2020

4QFY20 Results Update | Sector: Technology

Infosys

Estimate change

TP change

Rating change

Bloomberg

Equity Shares (m)

M.Cap.(INRb)/(USDb)

52-Week Range (INR)

1, 6, 12 Rel. Per (%)

12M Avg Val (INR M)

CMP: INR653

TP: INR775 (+19%)

Buy

COVID-19 leads to guidance withdrawal!

Cautious commentary on expected lines; Reiterate Buy

INFO IN



4,571

2780.7 / 35

847 / 511

6/5/10

7240

Financials & Valuations (INR b)

Y/E Mar

2020 2021E 2022E

Sales

908

915 1,015

EBIT Margin (%)

21.3

20.6

22.2

PAT

EPS (INR)

EPS Gr. (%)

BV/Sh. (INR)

Ratios

RoE (%)

RoCE (%)

Payout (%)

Valuations

P/E (x)

P/BV (x)

EV/EBITDA (x)

Div Yield (%)

166

39.0

5.3

145

25.3

20.4

44.8

16.7

4.5

13.3

2.7

156

36.8

(5.7)

169

21.8

17.9

54.4

17.7

3.9

12.2

3.1

183

43.1

17.1



188

Despite COVID-19 impact on utilization, Infosys was able to defend its gross

margins (QoQ, 33.4%), which is comforting. Large deal signings in Mar’20

(~USD1.7b v/s USD 1.8b in Dec’19) were impacted. However, it is important

to note that run-rate of new deal wins showed a meaningful increase (~50%

QoQ). Commentary around continued and broad-based deal wins over the

previous ~4 weeks is encouraging. In addition, anecdotal evidence of deal

transitions/ramp-ups in a remote manner is reassuring. We expect supply-

side aspects to ease off even as Work from Home (WFH) may outlast

lockdowns for a significant share of the workforce. In light of the heightened

uncertainty in the near term, we were not taken aback by the cautious

outlook of the company. Beyond near-term challenges, Infosys (INFO)

should be a key beneficiary of digital IT spends by enterprises.

We have marginally cut our FY21/FY22E EPS estimates as we build in heavier

pricing pressure, the impact of which is partially offset by the change in our

exchange rate assumption. Reiterating

Buy.

22.9

Revenue and normalized EBIT margins largely in line

19.3



In 4QFY20, revenue (USD)/EBIT (INR)/PAT increased 4%/7%/6% YoY (v/s our

46.4

estimates of 5%/8%/3% YoY).



15.1

3.5

10.0



3.1



Shareholding pattern (%)

As On

Promoter

DII

FII

Others

Mar-20 Dec-19 Mar-19

13.2

12.8

24.7

24.0

22.9

31.4

32.2

34.5

30.7

29.8

FII Includes depository receipts



As client approvals for WFH were not received in certain cases, revenue

witnessed ~USD32m (~1% revenue) drop.

INFO witnessed broad-based decline across geographies with its Indian

business witnessing the most pronounced impact (-8.5% QoQ, USD).

Barring Hi Tech (+2.5% QoQ, USD), other verticals reported revenue decline.

While Retail witnessed only a marginal decline (0.1% QoQ, USD), we believe

the full impact of COVID-19 is yet to come.

Adjusted for a couple of one-offs (earlier than usual recognition of visa costs

and higher than usual CSR expenses), EBIT margins were largely in line with

expectations.

Decline in utilization (-90bp impact), H-1B visa costs (-40bp impact) and

receivables hit (-50bp impact) were the margin headwinds. INR depreciation

(+50bp impact), reduced travel and other cost optimization measures

(+50bp impact) were the key margin tailwinds.

Large deal bookings in 4QFY20 stood at ~USD1.7b (~56% - New deals).

The company had strong collections with DSO declining by 4 days.

The Company hinted at no change in capital return policy.

In line with our expectations, the company suspended its tradition of guiding

for revenue growth/profitability because of the heightened uncertainty.

Despite encouraging medium-term prospects, INFO has hinted at a

challenging near term with no clear view on recovery.

Deal activity even for the previous 4 weeks was stated to be broad based.

While deal pipeline is still strong, conversion is expected to slow down.

Cautious management commentary



Sudheer Guntupalli – Research analyst

(Sudheer.Guntupalli@MotilalOswal.com); +91 22 5036 2749

Research analyst: Mohit Sharma

(Mohit.Sharma@MotilalOswal.com); +91226129 1531/

Heenal Gada

(Heenal.Gada@motilaloswal.com); +912250362654

(Mohit.Sharma@MotilalOswal.com)

refer through important disclosures made at the last page of the Research Report.

Investors are advised to

Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.

Infosys



Near-term headwinds are expected to impact all verticals and geographies.

However, company hinted at increased interest in areas like Cloud,

Virtualization and Security, etc. in response to the COVID-19 crisis.

INFO has called out a trend that clients are cutting back, reprioritizing and

delaying discretionary spends. While nothing was alarming so far, the company

did highlight that it is witnessing requests for price cuts/credit period extension.

Management was optimistic that the company will end up on the positive side

of potential vendor consolidation.

While there are not going to be COVID-19 related lay-offs, involuntary attrition

related to performance may still continue. Suspension of salary hikes,

promotions, incremental hiring and reduction in travel costs, capex and

discretionary spends are key margin defenses.

Valuation and view – Near-term uncertainties remain



The COVID-19 pandemic is expected to pose continued near-term challenges on

demand, supply, pricing and working capital fronts.

However, given the company’s historical track record of adapting to multiple

business challenges and technology change cycles, we believe it will be able to

navigate through COVID-19 headwinds.

Given the company’s usually conservative tone when it comes to its guidance,

we are not taken aback by its outlook in the current context.

We expect INFO to be a key beneficiary of the recovery in IT spends in FY22E.

The stock is currently trading in line with its long-term cross cycle average. Our

TP implies 18x FY22E EPS. Retain

Buy.

(INR Bn)

Quarterly Performance (IFRS)

Y/E March

Revenue (USD m)

QoQ (%)

Revenue (INR m)

YoY (%)

GPM (%)

SGA (%)

EBITDA

EBITDA Margin (%)

EBIT Margin (%)

Other income

ETR (%)

PAT

QoQ (%)

YoY (%)

EPS (INR)

2,831

0.9

191

12.0

35.8

12.0

26.0

23.7

26.2

-2.1

1.6

8.9

FY19

2,921 2,987

3.2

2.3

206

214

17.3

20.3

35.6

34.5

11.8

11.9

26.0

25.3

23.7

22.6

27.0

27.3

13.8

-12.2

10.3

-29.6

9.4

9.3

3,060

2.4

215

19.1

33.7

12.2

23.9

21.4

22.8

13.0

10.5

9.4

3,131

2.3

218

14.0

32.2

11.7

23.6

20.5

26.4

-6.8

5.3

8.8

FY20

3,210 3,243

2.5

1.0

226

231

9.8

7.9

33.4

11.7

11.5

24.9

25.1

21.7

21.9

26.5

23.6

6.2

10.6

-1.8

23.7

9.5

10.5

FY19

FY20

3,197 11,812 12,781

-1.4

8.0

8.2

233

827

908

8.0

17.2

9.8

33.4

34.8

33.1

12.2

12.0

11.8

209

223

24.4

25.3

24.5

21.2

22.8

21.3

21.1

25.9

24.4

154

166

-2.9

6.3

-4.3

8.0

10.2

37.1

39.0

Est.

4QFY20E

3,211

-1.0

231

7.3

33.0

11.4

24.8

21.6

26.5

-5.7

3.2

9.9

Var

(%/bp)

-0.4

-42bp

0.7

70bp

38bp

80bp

-1.1

-42bp

-22.5

-538bp

3.0

281bp

308bp

3.0

20 April 2020

Infosys

Key Performance Indicators

Y/E March

Revenue (QoQ CC %)

Margins

Gross Margin

EBIT Margin

Net Margin

Operating metrics

Headcount

Attrition (%)

Deal Win TCV (USD b)

Key Verticals (YoY CC %)

BFSI

Retail

Key Geographies (YoY CC%)

North America

Europe

2.3

35.8

23.7

18.9

FY19

4.2

35.6

23.7

19.9

2.7

34.5

22.6

16.9

2.1

33.7

21.4

18.9

2.8

32.2

20.5

17.4

FY20

3.3

33.4

21.7

17.8

FY19

1.0

33.4

21.9

19.3

-0.8

33.4

21.2

18.6

10.5

34.8

22.8

18.6

FY20

9.8

33.1

21.3

18.3

2,09,905 2,17,739 2,25,501 2,28,123 2,29,029 2,36,486 2,43,454

23.0

22.2

19.9

20.4

23.4

21.7

19.6

1.1

2.0

1.6

2.7

2.8

1.8

2.5

7.3

4.7

10.9

5.4

13.7

6.7

10.8

9.4

10.6

8.7

9.8

8.5

11.4

12.6

11.6

11.3

6.9

13.5

11.4

10.3

1.1

11.9

14.6

6.2

2.5

10.1

12.0

2,42,371 2,28,123 2,42,371

20.7

20.4

20.7

1.6

6.3

9.0

5.7

4.2

5.5

9.6

6.4

10.9

8.2

10.9

8.2

3.6

10.2

11.8

Management commentary highlights



In line with our expectations, the company has suspended its tradition of

guiding for revenue growth/profitability because of heightened uncertainty.

Despite encouraging medium-term prospects, INFO has hinted at a challenging

near-term with no clear view on recovery.

Deal activity even over the previous 4 weeks was stated to be broad based.

While deal pipeline is still strong, conversion is expected to slow down.

Near-term headwinds are expected to impact all verticals and geographies.

Management has hinted at increased interest in areas like Cloud, Virtualization

and Security, etc. in response to the COVID-19 crisis.

INFO has called out a trend that clients are cutting back, reprioritizing and

delaying discretionary spends.

While nothing is alarming so far, the company did indicate that it is witnessing

requests for price cuts and extension of credit terms.

Management’s discussions with clients indicate that INFO will possibly end up

on the positive side of potential vendor consolidation.

Supply-demand mismatch is expected to continue for some more time as the

earlier hiring was done with different expectations.

While there would not be COVID-19 related lay-offs, involuntary attrition related

to performance may still continue.

Suspension of salary hikes, promotions, incremental hiring and reduction in

travel costs, capex and discretionary spends are key margin defenses.

The company has hinted at no change in its capital return policy.

In 4QFY20, revenue (USD) / EBIT (INR)/PAT increased by 4%/7%/6% YoY (v/s our

estimates of 5%/8%/3% YoY).

As client approvals for WFH were not received in certain cases, revenue

witnessed ~USD32m (~1% revenue) drop.

INFO witnessed broad-based decline across geographies with its Indian business

witnessing the most pronounced impact (-8.5% QoQ, USD).

Barring Hi Tech (+2.5% QoQ, USD), other verticals reported revenue decline.

While Retail witnessed only a marginal decline (0.1% QoQ, USD), we believe the

full impact of COVID-19 is yet to come.

Revenue and normalized EBIT margins largely in line



20 April 2020

Infosys

Exhibit 1: While COVID-19 impacted BFSI growth…

Infosys - BFSI Organic (YoY CC %)

-1%

Exhibit 2: …full impact in Retail has not yet come

Infosys - Retail (YoY CC %)

11%

Mar-19

Jun-19

Sep-19

Dec-19

Mar-20

Mar-19

Jun-19

Sep-19

Dec-19

Mar-20

Source: Company, MOFSL

Exhibit 3: Growth in key geographies like the US and…

Infosys - US (YoY CC %)

14%

Exhibit 4: …Europe moderated due to COVID-19

Infosys - Europe Organic (YoY CC %)

12%

10%

Mar-19

Jun-19

Sep-19

Dec-19

Mar-20

Mar-19

Jun-19

Sep-19

Dec-19

Mar-20

Source: Company, MOFSL

Exhibit 5: While BFSI reported sequential decline…

Infosys - BFSI (QoQ %)

Exhibit 6: …full COVID-19 impact in Retail has not yet come

Infosys - Retail (QoQ %)

-1%

-2%

-1%

Mar-19

Jun-19

Sep-19

Dec-19

Mar-20

Mar-19

Jun-19

Sep-19

Dec-19

Mar-20

Source: Company, MOFSL

Exhibit 7: Key geographies like US and Europe reported…

Infosys - US (QoQ %)

Exhibit 8: …a sequential decline

Infosys - Europe (QoQ %)

-1%

Mar-19

Jun-19

Sep-19

Dec-19

Mar-20

Mar-19

-2%

Jun-19

Sep-19

Dec-19

-2%

Mar-20

Source: Company, MOFSL

20 April 2020

Infosys



Adjusted for a couple of one-offs (earlier than usual recognition of visa costs and

higher than usual CSR expenses), EBIT margins were largely in line with

expectations.

Decline in utilization (-90bp impact), H-1B visa costs (-40bp impact) and

receivables hit (-50bp impact) were the margin headwinds. INR depreciation

(+50bp impact), reduced travel and other cost optimization measures (+50bp

impact) were the key margin tailwinds.

Large deal bookings in 4QFY20 stood at ~USD1.7b (~56% - New deals).

The company had strong collections with DSO declining by 4 days.

Exhibit 10: Utilization was impacted due to COVID-19

Utilization (excluding trainees)

84%

85%

82%

83%

84%

Exhibit 9: Increase in attrition was performance related

Attrition Consolidated (LTM %)

23%

22%

20%

22%

20%

21%

Source: Company, MOFSL

Exhibit 11: Large deal signings were impacted in Mar’20

USD b, 4qtr rolling avg.

123%

69%

89%

105%

80%

59%

44%

YoY %, 4qtr rolling avg.

Exhibit 12: However, new wins reported robust increase

New deal wins (USD b)

Renewals (USD b)

1.6

0.8

0.6

0.5

1.1

1.2

0.5

0.6

0.9

1.2

0.5

2.2

1.2

0.6

0.7

0.9

Source: Company, MOFSL

Valuation view – Near-term uncertainties remain



The COVID-19 pandemic is expected to pose continued near-term challenges on

demand, supply, pricing and working capital fronts.

However, we take a leap of faith in the company’s ability to navigate through

these issues given its historical track record of adapting to multiple business

challenges and technology change cycles.

Given the company’s usually conservative tone when it comes to its guidance,

we are not taken aback by its outlook in the current context.

We expect INFO to be a key beneficiary of recovery in IT spends in FY22E.

The stock is currently trading at ~18x FY21E earnings, in line with its long-term

cross cycle averages. Our TP implies no further re-rating. Retain Buy.

20 April 2020

Infosys

Exhibit 13: Revision to our estimates

Revised

FY21E

FY22E

74.5

12,276

13,630

(4.0)

11.0

20.6

22.2

156

183

36.8

43.1

Earlier

FY21E

FY22E

73.5

12,585

13,839

(2.0)

10.0

21.3

22.5

163

189

38.4

44.6

Change

FY21E

FY22E

1.4%

-2.5%

-1.5%

-200bps

110bps

-60bps

-30bps

-4.2%

-3.4%

-4.2%

-3.4%

Source: MOFSL

INR/USD

USD Revenue - m

Growth (%)

EBIT margin(%)

PAT (INR B)

EPS

Exhibit 14: Over the long term, 1-year forward P/E multiples averaged to ~18x

Infosys 1yr fw P/E

Source: Bloomberg, MOFSL

20 April 2020

Infosys

Operating Metrics

1QFY19

Effort (IT Services and Consulting)

Onsite

Offshore

Utilization (IT Services and Consulting)

Including trainees

Excluding trainees

Employee Metrics

Total Employees (Consolidated, in k)

S/W professional (k)

Support and sales (k)

Women employees (%)

Attrition - annualized standalone %

Attrition - annualized consolidated %

Revenues by client geography

North America

Europe

India

ROW

Revenues by Business segments

Financial Services

Retail

Communications

Energy, Utilities, Resources and Servcies

Manufacturing

Hi Tech

Life Sciences

Others

Revenues by offerings

Digital

Core

Geography YoY % CC

North America

Europe

India

ROW

Business Segments YoY % CC

Financial Services

Retail

Communications

Energy, Utilities, Resources and Servcies

Manufacturing

Hi Tech

Life Sciences

Others

DSO

Large deal TCV (USD m)

Client (% of revenues)

Top client

Top 10 client

Top 25 client

Number of active clients

New clients added in the period

Repeat business %

29%

71%

82%

86%

210

165

21%

23%

60%

24%

13%

32%

17%

13%

12%

10%

28%

72%

11%

-19%

10%

16%

-14%

1,116

3.7%

19.2%

34.9%

1,214

99.5%

2QFY19

28%

72%

80%

86%

218

172

20%

22%

60%

24%

13%

32%

17%

12%

10%

31%

69%

11%

-12%

15%

14%

13%

11%

-6%

2,029

3.9%

19.4%

34.7%

1,222

98.2%

3QFY19

29%

71%

80%

84%

226

177

18%

20%

60%

24%

13%

33%

16%

12%

13%

10%

32%

69%

10%

-2%

20%

11%

17%

16%

11%

-3%

1,570

3.4%

19.2%

33.9%

1,251

101

96.6%

4QFY19

29%

71%

79%

82%

228

180

18%

20%

61%

24%

13%

32%

16%

14%

13%

10%

34%

66%

13%

12%

-6%

12%

11%

18%

17%

13%

-1%

1,568

3.3%

19.7%

35.0%

1,279

101

95.2%

1QFY20

29%

71%

80%

83%

229

180

37%

22%

23%

62%

24%

13%

31%

16%

14%

13%

10%

36%

64%

14%

11%

23%

18%

13%

15%

-1%

2,714

3.2%

20.0%

34.9%

1,336

112

99.0%

2QFY20

28%

72%

82%

85%

236

186

37%

19%

22%

61%

24%

12%

32%

15%

13%

10%

38%

62%

12%

15%

18%

10%

19%

17%

12%

11%

2,847

3.2%

19.2%

34.6%

1,364

98.1%

3QFY20

28%

72%

80%

84%

243

191

38%

18%

20%

61%

24%

12%

32%

15%

13%

10%

41%

59%

10%

12%

18%

21%

12%

18%

12%

1,813

3.0%

18.9%

34.2%

1,384

97.2%

4QFY20

28%

72%

79%

84%

242

190

38%

18%

21%

62%

24%

11%

31%

16%

13%

10%

42%

58%

10%

22%

12%

21%

1,646

3.1%

18.7%

34.1%

1,411

95.9%

20 April 2020

Infosys

Financials and valuations

Income Statement

Y/E March

Sales

Change (%)

Software Develop. Exp.

SGA expenses

EBITDA

% of Net Sales

Depreciation

Interest

Other Income

PBT

Tax

Rate (%)

Minority Interest

Adjusted PAT

Extraordinary Items

Reported PAT

Change (%)

Balance Sheet

Y/E March

Share Capital

Reserves

Net Worth

Capital Employed

Gross Block

Less : Depreciation

Net Block

Investments & Other Assets

Curr. Assets

Debtors

Cash & Bank Balance

Loans & Advances

Other Current Assets

Current Liab. & Prov

Net Current Assets

Application of Funds

2015

533

6.4

329

149

27.9

173

28.6

123

11.2

2016

624

17.1

391

171

27.4

187

28.0

135

9.4

2017

685

9.7

433

186

27.2

200

28.0

144

6.6

2018

705

3.0

451

190

27.0

203

20.9

161

11.9

2019

827

17.2

539

209

25.3

218

25.9

161

-7

169

4.7

2020

908

9.8

607

107

223

24.5

220

24.4

166

-1.3

2021E

915

0.7

617

109

226

24.7

213

26.5

156

-6.1

(INR b)

2022E

1,015

11.0

676

114

276

27.2

249

26.5

183

17.1

(INR b)

2022E

778

799

860

713

252

460

131

487

248

176

219

268

860

2015

542

548

550

164

129

472

126

312

114

358

550

2016

606

618

622

175

153

517

144

328

132

385

622

2017

678

690

693

258

161

135

537

160

326

140

397

693

2018

638

649

658

261

115

146

153

500

174

262

141

359

658

2019

628

650

661

311

135

176

143

529

202

262

186

342

661

2020

637

658

719

414

164

251

131

546

256

233

209

337

719

2021E

694

715

776

549

201

347

131

495

223

214

197

297

776

20 April 2020

Infosys

Financials and valuations

Ratios

Y/E March

Basic (INR)

EPS

Cash EPS

Book Value

DPS

Payout % (excl.div.tax, inc. buyback)

Valuation (x)

P/E

Cash P/E

EV/EBITDA

EV/Sales

Price/Book Value

Dividend Yield (%)

Profitability Ratios (%)

RoE

RoCE

Turnover Ratios

Debtors (Days)

Fixed Asset Turnover (x)

Cash Flow Statement

Y/E March

CF from Operations

Cash for Working Capital

Net Operating CF

Net Purchase of FA

Free Cash Flow

Net Purchase of Invest.

Net Cash from Invest.

Proceeds from Equity

Others

Dividend Payments

Cash Flow from Fin.

Net Cash Flow

Opening Cash Bal.

Add: Net Cash

Closing Cash Bal.

2015

53.9

58.6

239.6

22.3

41.2

12.1

11.1

10.0

2.8

2.7

3.4

24.1

19.2

4.1

2016

29.5

32.7

135.1

24.3

82.2

22.1

19.9

17.4

4.8

3.7

23.2

19.2

4.1

2017

31.5

35.2

150.9

25.8

81.9

20.7

18.5

16.0

4.3

4.0

22.0

18.5

4.2

2018

35.7

39.3

142.0

43.5

122.0

18.3

16.6

15.7

4.2

4.6

6.7

24.0

20.1

4.8

2019

37.1

41.3

142.2

21.5

58.0

17.6

15.8

14.2

3.6

4.6

3.3

23.7

21.2

4.7

2020

39.0

42.9

144.7

17.5

44.8

16.7

15.2

13.3

3.3

4.5

2.7

25.3

20.4

103

3.6

2021E

36.8

45.7

168.7

20.0

54.4

17.7

14.3

12.2

3.0

3.9

3.1

21.8

17.9

2.6

2022E

43.1

55.1

188.5

20.0

46.4

15.1

11.8

10.0

2.7

3.5

3.1

22.9

19.3

2.2

(INR b)

2022E

290

-9

215

-164

-99

-48

214

-48

176

2015

7,624

1,680

9,237

9,248

786

797

-13

-50

-63

9,971

290

9,971

312

2016

204

-23

122

-27

-31

-17

-70

-86

312

328

2017

217

-19

141

-21

119

-63

-48

-2

-69

-71

328

326

2018

236

-26

168

-3

164

-21

-227

-202

-55

326

-55

262

2019

230

191

-50

141

-40

-41

-112

-153

-3

262

-3

262

2020

252

-24

174

-104

-92

-69

-89

-158

-76

262

-76

233

2021E

250

215

-134

-99

-19

233

-19

214

20 April 2020

Infosys

NOTES

20 April 2020

Infosys

Explanation of Investment Rating

Investment Rating

Expected return (over 12-month)

BUY

>=15%

SELL

< - 10%

NEUTRAL

< - 10 % to 15%

UNDER REVIEW

Rating may undergo a change

NOT RATED

We have forward looking estimates for the stock but we refrain from assigning recommendation

*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within

following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.

Disclosures

The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).

Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the

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registered Trading Member with National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and

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though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report

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Research Analyst views on Subject Company may vary based on Fundamental

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located in Hong Kong & are not conducting Research Analysis in Hong Kong.

For U.S.

Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under

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The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S.

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For Singapore

In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a ca pital markets

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Specific Disclosures

1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.

2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company

3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months

4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report

5 Research Analyst has not served as director/officer/employee in the subject company

6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months

7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months

8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months

9 MOFSL has not received any compensation or other benefits from third party in connection with the research report

10 MOFSL has not engaged in market making activity for the subject company

20 April 2020

Infosys

********************************************************************************************************************************

The associates of MOFSL may have:

- financial interest in the subject company

- actual/beneficial ownership of 1% or more securities in the subject company

- received compensation/other benefits from the subject company in the past 12 months

- other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the

specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even

though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.

- acted as a manager or co-manager of public offering of securities of the subject company in past 12 months

- be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the

company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies)

- received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.

The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report

Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not

consider demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from

clients which are not considered in above disclosures.

Analyst Certification

The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the

research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.

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This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and

may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent

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customers by virtue of their receiving this report.

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The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or

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in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances.

The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment

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the information and opinions contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and

should not be treated as endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make

modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and the employees may from

time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to

perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a

separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of

information that is already available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or

may not subscribe to all the views expressed therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on,

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expenses that may be suffered by the person

accessing this information due to any errors and delays.

Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263;

Website

www.motilaloswal.com.CIN

no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road,

Malad(West), Mumbai- 400 064. Tel No: 022 7188 1000.

Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst:

INH000000412. AMFI: ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company

Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth

Management Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is

a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt.

Ltd. which is a group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL.

Research & Advisory services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no

assurance or guarantee of the returns. Investment in securities market is subject to market risk, read all the related documents carefully before investing. Details of Compliance

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* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National

Company Law Tribunal, Mumbai Bench.

20 April 2020