Infosys, India's second largest software services exporter, surprised the street with better-than-expected results for the third quarter and also raised its full year guidance, contrary to most analysts who were expecting a cut, sending its shares soaring 12 percent in morning trade.
Infosys , India's second largest software services exporter, surprised the street with better-than-expected results for the third quarter and also raised its full year guidance, contrary to most analysts who were expecting a cut, sending its shares soaring 12 percent in morning trade.
The Bangalore-based company reported a consolidated net profit of Rs 2,369 crore, unchanged quarter-on-quarter (down 0.1% from year ago), while revenue rose near 6 percent sequentially (12 percent YoY) to Rs 10,424 crore in Oct-Dec.
Analysts on average were expecting Infosys to report a net profit of Rs 2,255 crore, on revenue of Rs 10,090 crore, according to a CNBC-TV18 poll.
In US dollar terms, Q3 Net income was at USD 434 million, compared with USD 431 million in Q2. Revenue including that of Lodestone, the Zurich-based management consultancy firm it had acquired in September 2012, rose 6 percent sequentially (6 percent YoY) to USD 1.91 bilion.
"We were able to maintain our margins through efficiency improvements despite increased operating expenses. We remain focused on making the right investments for profitable and sustainable growth in the longer term," said Rajiv Bansal, CFO.
Infosys has now raised its guidance for the current financial year and now expects revenue to be at least Rs 40,746 crore, and EPS of at least Rs 162.80. At the end of Q2 it had forecast full year revenue of at least Rs 39,582 crore and EPS of Rs 160.61.
In US dollar terms, its revenue is now expected to be at least USD 7.45 billion and earnings per American depository share of at least USD 2.97. It had earlier guided for a revenue of at least USD 7.34 billion on EPADS of USD 2.97.
During the third quarter, Infosys won 8 large outsourcing deals amounting to USD 731 million of total contract value. The company and its subsidiaries gained 53 clients during the quarter and net 977 employees were added (7,499 gross addition).
As of Dec 31, it had 1,55,629 employees.
"We continue to gain confidence from a strong pipeline of large deals. However, the broader economic environment remains difficult. Even so, we remain cautiously optimistic about the Jan-March quarter," said SD Shibulal, CEO and MD.
At 9:20 hrs, Infosys shares were at Rs 2,608, up 12.30 percent on NSE.
READ MORE ON Infosys Q3, Infy Q3FY13, results, earnings, guidance, outlook, forecast, software services, SD Shibulal, CEO
Set email alert for
ADS BY GOOGLE
video of the day
See 20-30% growth for Indian mkt over few years: Mobius