Infosys jumps 3.5% on Q3 nos; $ rev guidance up to 11.5-12%

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

Moneycontrol Bureau

Shares of Infosys jumped 3.5 percent intraday on Friday after it announced December quarter earnings. Investors are euphoric on the stock as the IT exporter raised its full year (FY14) dollar revenue guidance to 11.5-12 percent from 9-10 percent earlier, which was largely in-line with analysts' expectations of 11-12 percent.

During the period, its consolidated revenue increased 0.47 percent sequentially (up 25 percent Y-o-Y), in-line, to Rs 13,026 crore and dollar revenue climbed 1.6 percent Q-o-Q to USD 2,100 million in the quarter gone by.

"The year ahead looks exciting for the IT services industry. We believe the global economic environment has improved and clients are gaining confidence to invest in their strategic initiatives," S D Shibulal, CEO and managing director said.

Infosys’ adjusted net profit rose 19.4 percent, higher-than-expected, quarter-on-quarter to Rs 2,875 crore in the quarter ended December 2013. Year-on-year growth in profit was 21.4 percent. Its profitability was impacted by visa cost of Rs 219 crore (one off item) in the quarter ended September 2013.

According to CNBC-TV18 poll, analysts had expected adjusted net profit of Rs 2626 crore (reported net profit was expected at Rs 2,752 crore) on revenues of Rs 13,055 crore.Earnings before interest and tax (EBIT) rose 14.9 percent, stronger-than-expected quarter-on-quarter to Rs 3,259 crore and EBIT margin expanded by 328 basis points to 25 percent.

Analysts had expected EBIT at Rs 3,154 crore and margin at 24.15 percent for the quarter.Liquid assets including cash and cash equivalents, available-for-sale financial assets, certificates of deposits and government bonds increased to Rs 27,440 crore as on December 31, 2013 from Rs 26,907 crore in earlier quarter.

At 09:32 hrs, the stock as quoting at Rs 3,514.70, up Rs 63.65, or 1.84 percent on the BSE.