ALSO READMarkets end at record highs, up over 1% for the day; PSU Banks, realty lead Mid-size IT firms stay ahead on niche focus Outlook for Nifty remains bullish, says Sacchitanand Uttekar Dixon Technologies makes stellar debut; ends at 64% premium on IPO price Sterlite Technologies zooms 57% in three days after strong Q1 results
Revenue for the quarter in line with the analyst estimates of Rs 993 crore against Rs 984 crore in June quarter (Q2CY17). In dollar terms, revenues for the quarter at USD 154 million grew by 0.9% QoQ versus street estimates of 0.5% QoQ growth.
While company has maintained its CY17 revenue guidance of 14%-15%, management has guided for achieving growth towards the upper end of the range. The company revised upward Ebitda (earnings before interest, tax, depreciation and amortization) growth guidance to 16.5%-17.5%. The previous guidance was that Ebitda growth will be in line with revenue growth i.e. 14-15%.
“Given the beat on 3QCY17 we increase our CY17 USD revenue estimate to 15% (14.5% earlier). We maintain our CY18 estimate of 10% YoY growth despite client specific headwind of 2.5-3.0% as we remain confident of the company offsetting the same through the increased traction seen in new deal wins and enhanced client mining capabilities. Company has demonstrated good success in winning new business from new clients and also adding new clients in top-20,” Analysts at Antique Stock Broking said in result review with maintain ‘hold’ rating on the stock.
In past one year, the stock has outperformed the market by gaining 50% as compared to 22% rise in the S&P BSE Sensex.