Analysts, on an average, had expected profit of Rs 612 crore on revenues of Rs 7,311 crore from the country's fifth largest IT services firm.
Earnings before interest, taxation, depreciation and amortisation (EBITDA) margin improved 70 bps sequentially at 12.7%.
"Our performance during the quarter reaffirms the early success of our D.A.V.I.D strategy and the journey we have undertaken to become a leading Digital Transformation Company," Gurnani added.
“EBITDA margin expansion of 70bps QoQ versus expectations of 20bps expansion sprung a positive surprise. Further, improvement is on the anvil as the company improves the growth trajectory and pulls on levers like utilisation, pyramid rationalisation and G&A optimisation. Full quarter benefit of the head count rationalisation will accrue in 2QFY18. We reiterate our thesis of margin improvement being the key trigger for valuation re-rating,” analysts at Antique Stock Broking said in Q1FY18 result review.
Meanwhile, thus far in the calendar year 2017, the stock had unperformed the market by falling 21% as compared to 22% rise in the S&P BSE Sensex till Monday.