Infosys surprises in Q3: Is this a turning point?

Infosys announced results for the quarter ended December 31, 2012. Its revenues (including Lodestone) were at Rs 10,424 crore, which is a 5.7% growth quarter on quarter. The company has marginally exceeded street-expectations and its management seems a lot more confident than it has been in last few quarters; they have even upped their dollar guidance. 

"We have done well in this quarter despite an uncertain environment,” said S. D. Shibulal, CEO and  Managing Director. "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 January-March quarter," he added."

Analysts say all these are early signs of a turning point for the company which had gone below TCS and Wipro in terms of valuations.

Here are a few points that adds to the optimism:

•  The company won 8 large outsourcing deals amounting to US$ 731 million of total contract value
•  14 new wins for Infosys’ products and platforms
•  Infosys and its subsidiaries added 53 clients during the quarter
• Gross addition of 7,499 employees (net addition of 977) for the quarter by Infosys and its subsidiaries.
• 1,55,629 employees as on December 31, 2012 for Infosys and its subsidiaries
• Completed the acquisition of Lodestone Holding AG, a leading management consultancy based in Switzerland
• Infosys American Depositary Shares (ADS) trade on the New York Stock Exchange (NYSE) under the ticker symbol ‘INFY’. The company is in the process of listing its ADS on the Paris and London exchanges of NYSE Euronext.