Infosys gains 3% as Q1 beats street expectations

The stock was up 3% to Rs 1,007 on BSE in early morning trade.

Infosys was up 3% to Rs 1,007 on BSE in early morning trade after the second largest domestic IT firm reported a better than expected financial results for the first quarter ended June 2017 (Q1FY18).

The consolidated net profit declined 3.3% sequentially to Rs 3,483 crore in Q1FY18, while revenues fell 0.2% at Rs 17,078 crore over the previous quarter.

Analysts on an average had expected profit of Rs 3,463 crore and revenues of Rs 17,037 crore for the quarter.

In US dollar terms, Q1 revenues grew sequentially by 3.2%, and 2.7% in constant currency terms.

Meanwhile, Infosys has raised FY18 dollar revenue guidance to 7.1-9.1% from 6.1-8.1% earlier.

“Revenues are expected to grow 6.5%-8.5% in constant currency; and 7.1%-9.1% in USD terms based on the exchange rates as of June 30, 2017,” Infosys said in a press release.

However, FY 18 revenue guidance retained at 6.5%-8.5% in constant currency. FY 18 operating margin guidance retained at 23%-25%,” it added.

The stock turned volatile and fell 2.4% from its opening level to Rs 983 in intra-day trade so far.

At 9:34 am, it was trading 2% higher at Rs 992 on BSE, as compared to 0.11% decline in the S&P BSE Sensex. A combined 3.11 million shares changed hands on the counter on BSE and NSE so far.

So far in 2017, Infosys underperformed the market by falling 3.4% against 20% rise in the benchmark index, till Thursday.