July 12, 2012 / 15:47 IST
Ventura is bearish on Infosys and has recommended sell rating on the stock in its July 12, 2012 research report.
- Infosys reported decline in PAT by 1% Q-o-Q (Rs.2,289 cr.) in Q1FY13 v/s market expectation of 5.7% Q-o-Q.
- Revenue has increased to 28% in Q1FY13 v/s market expectation of 9.2% Y-o-Y.
- EBIT margins have improved to 28% from 26% Q-o-Q.
- Revenue for the retail & manufacturing segment grew on Q-o-Q basis. Revenue for the BFSI segment remained flat while that of the energy segment witnessed a decline.
- The Company added 51 new clients during the quarter.
- Total net addition to the employee base stood at 1,157. Attrition rate was 14.9%.
- At the end of Q1 FY13, Cash and cash equivalents, including investments was Rs.20,596 crore (Rs.16,969 crore as on June 30, 2011).
- The company has guided for Revenue & EPS of Rs.40,364 cr and 166.5 respectively, for FY13.
Outlook: Uncertain outlook for the global IT space has cast shadows on the profitability of the Indian IT space. With major companies like General Motors going for in-sourcing and US government supporting them through tax breaks can affect the growth & profitability of the Indian IT space. Further, Infosys with continued disappointing numbers is likely to remain in seller’s radar. We recommend, a SELL on the stock.
FIIs holding more than 30% in Indian cos Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.To read the full report click on the attachment 
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