Accounting

Primer
Accounting Primer 2
Ankur Mehra, PhD
MBA Orientation 2020
Office: C – 212 D | M: +91 9903831354
E: ankur.mehra@snu.edu.in
School of Management & Entrepreneurship
Shiv Nadar University
Agenda

• Infosys Quarterly Results

• Accounting Framework – A Basic Example

• Case – Ribbons an ’Bows, Inc.

Accounting Primer | MBA Orientation | Shiv Nadar University 2

Source: https://www.infosys.com/investors/reports-filings/quarterly-results/2020-2021/q1/documents/ifrs-usd-press-release.pdf

Accounting Primer | MBA Orientation | Shiv Nadar University 3

Source: https://www.infosys.com/investors/reports-filings/quarterly-results/2020-2021/q1/documents/ifrs-usd-press-release.pdf

Accounting Primer | MBA Orientation | Shiv Nadar University 4

Source: https://www.infosys.com/investors/reports-filings/quarterly-results/2020-2021/q1/documents/ifrs-usd-press-release.pdf

Accounting Primer | MBA Orientation | Shiv Nadar University 5

Source: https://www.infosys.com/investors/reports-filings/quarterly-results/2020-2021/q1/documents/ifrs-usd-press-release.pdf

Accounting Primer | MBA Orientation | Shiv Nadar University 6

Source: https://www.infosys.com/investors/reports-filings/quarterly-results/2020-2021/q1/documents/ifrs-usd-press-release.pdf

Accounting Primer | MBA Orientation | Shiv Nadar University 7

Source: https://www.infosys.com/investors/reports-filings/quarterly-results/2020-2021/q1/documents/ifrs-usd-press-release.pdf

Accounting Primer | MBA Orientation | Shiv Nadar University 8

 Source: Google Finance
Accounting Primer | MBA Orientation | Shiv Nadar University 9
CLSA
• Maintains ‘buy’ rating and raises price target to Rs 1,000 apiece from Rs 860
• First-quarter results well above expectations
• Healthy deal wins, stable cash management and an optimistic outlook
• Expects margins to be broadly stable in FY21
• Raises FY21/FY22 EPS estimates by 9%

JPMorgan
• Maintains ‘overweight’ rating; raises price target to Rs 1,000 apiece from Rs 900
• First quarter beat expectations on all counts
• Has outpaced TCS over the last four quarters
• Tangible improvement in client relevance and superior performance justifies a re-rating
• Upgrades FY21-23 earnings estimates by 7-8%
• Upgrades FY21-23 margin estimates by 60-120

Reinstatement of guidance is a morale booster

Source: BloombergQuint
Accounting Primer | MBA Orientation | Shiv Nadar University 10
Thank You
“Do you know what you are?
You are a manuscript of a divine letter.
You are a mirror reflecting a noble face.
This universe is not outside of you.
Look inside yourself;
everything that you want,
you are already that.”
― Rumi