Infosys jumps 15%, leaves FY14 $ rev guidance unchanged

Moneycontrol Bureau

Infosys shares surged 15 percent in early trade Friday after it reported better-than-expected first quarter numbers and kept dollar revenue guidance for current financial year 2013-14 unchanged at 6-10 percent.

India's second largest software services exporter's April-June quarter net profit fell lower-than-expected 0.8 percent quarter-on-quarter to Rs 2,374 crore while rupee revenue increased higher-than-expected 7.8 percent Q-o-Q to Rs 11,267 crore.

Analysts on an average had expected it to report net profit at Rs 2,315 crore on revenue of Rs 11,029 crore for the quarter.

Brokerage house Goldman Sachs says Infosys surprised on the upside both in terms of revenue and profit in Q1.

Meanwhile, UBS advised buying Infosys with a target price of Rs 2,900/share.

Software services exporter says FY14 rupee revenue is likely to grow at 13-17 percent. "We leave current financial year (FY14) revenue guidance unchanged at 6-10 percent," says Infosys.

The company is cautiously optimistic about rest of the year, says CEO, SD Shibulal. However, CFO Rajiv Bansal says July wage hike will affect margins in future quarters.

At 09:16 hours IST, the stock was quoting at Rs 2,901.50, up 14.76 percent on the Bombay Stock Exchange.

Its rivals TCS gained 3 percent and Wipro rose 2 percent.