Infosys: Another subdued quarter, rupee enabled growth

Microsec has come out with its report on Infosys result.

“INFY reported 8.6% q-o-q increase in its top line to Rs9,616 Crores in Q1 FY2013. As mentioned in our coverage, ‘Rs’ to remain the key ‘Savior’ dated 05 July 2012, on INFY and TCS, depreciation of Rs against $ remained the key contributor for this growth. In $ terms, the company reported 1.1% sequential decline in revenues to $1,752 Mn. Although INFY was able to register 2.0% increase in volumes, a 3.7% decline in pricing more than offset the gains provided by volumes, to the top line. Among the geographies, in $ terms INFY reported rising top line only in the US, where revenues increased q-o-q by 1.6%. In rest of the geographies, the company posted a decline in $ revenues. This decrease was led from the front by Europe, where revenues decline sequentially by 8.1%. While sales from India dipped 4.3%, Rest of the World (RoW) revenues shrunk 1.0% vis-à-vis Q4 FY2012. However, depreciation of Rs helped INFY to post q-o-q growth in revenues across the geographies.”

“Among the business segments, all of INFY’s business segments reported healthy performance in Q1 FY2013, in Rs terms. The Financial Services segment’s top line increased 24.5% y-o-y, or 8.6% sequentially, to Rs3,298 Crores during the quarter. In addition, INFY registered strong ‘Rs’ performance in Manufacturing, Retail as well as Telecom segments. While revenues from Manufacturing business grew robust 39.2% y-o-y to Rs2,116 Crores, sales of Retail segment expanded 34.9% y-o-y to Rs1,625 Crores during the quarter. Telecom segment’s performance also remained robust during the quarter with a yo- y expansion of 22.4% in the top line to Rs971 Crores. Financial Services continued to account for the largest share of the company’s top line pie. Share of Financial Services business in top line stood at 34.3% during the quarter followed by Manufacturing (22.0%), Retail (16.9%), and Telecom (10.1%), respectively. The following exhibit reflects the q-o-q and y-o-y change in share of various business streams in the company’s revenues,” says Microsec research report.

Institutional holding more than 40% in Indian cos

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