CNX IT index surges over 400 points post Infosys Q3 results

Infosys, TCS, HCL Technologies, Wipro, Tech Mahindra, Persistent Systems and MindTree rallied between 2-6% on NSE.

Shares of information technology (IT) companies are in demand with the CNX IT index surged over 400 points after the sector major Infosys has reported a better-than-expected net profit growth in October-December quarter (Q3).

Infosys, Tata Consultancy Services (TCS), HCL Technologies, Wipro, Tech Mahindra, Persistent Systems, MindTree, Hexaware Technologies and CMC have rallied between 2-6% on the National Stock Exchange (NSE).

CNX IT index, the largest gainer among sectoral indices, was up nearly 4% or 422 points at 11,440 at 1313 hours. It touched high of 11,485, bouncing back 553 points from intra-day low of 10,932 before Infosys results. The benchmark CNX Nifty was up marginally 0.04% or 3 points at 8,238.

Shares of Infosys has moved higher by 7% to Rs 2,109, bouncing back 10% from its intra-day low after reporting 4.9% quarter-on-quarter jump in consolidated net profit to Rs 3,250 crore for the quarter ended December 31, 2014. The company had profit of Rs 3,096 crore in September quarter.

The net profit rose 13% on a year-on-year basis, as it won more outsourcing contracts from Western clients.

Moreover, the company maintained its guidance of 7-9% for the full year FY15, managing to beat street expectations on both net profit and US dollar guidance.

U. B. Pravin Rao, Chief Operating Officer of Infosys said, “During the quarter, we saw broad-based volume growth, increased utilization and strong client additions”.

“We have made 100% variable payout for Q3 and have seen a further decline in attrition as a result of multiple initiatives taken over the last few quarters,” he adds.