Question 1

What is the significance of Operating Profit Margin (OPM) for Infosys?

Accepted Answer

The Operating Profit Margin shows how efficiently Infosys manages its operating expenses relative to its sales. A stable or increasing OPM indicates effective cost management and strong profitability.

Question 2

How does Earnings Per Share (EPS) impact investor decisions?

Accepted Answer

Earnings Per Share (EPS) reflects the company's profitability on a per-share basis. Higher EPS values make the stock more attractive to investors, as it indicates better profitability.

Question 3

Why is Return on Equity (ROE) important?

Accepted Answer

Return on Equity (ROE) measures the company's ability to generate profits from shareholders' equity. A high ROE signifies efficient use of equity capital and strong financial performance.

Question 4

What does the asset distribution tell us about Infosys?

Accepted Answer

The asset distribution shows how Infosys allocates its resources across different categories. A diversified asset portfolio indicates strategic resource management and financial health.

Question 5

What does the liability distribution indicate?

Accepted Answer

The liability distribution reflects Infosys's financial obligations. A high reserve indicates financial strength and stability, ensuring the company can meet its long-term commitments.

Question 6

How has Infosys's sales performance evolved over the years?

Accepted Answer

Infosys's sales have shown impressive growth, increasing from Rs. 70,522 crore in March 2018 to Rs. 1,46,767 crore in March 2023. This growth trend is expected to continue, reaching Rs. 1,71,006 crore by March 2025.

Question 7

What future prospects can investors expect from Infosys?

Accepted Answer

Investors can expect stable growth in key financial metrics, consistent profitability, and strong returns on equity. The company’s well-balanced asset and liability distribution further underscores its potential for long-term growth.

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