 "Infosys gains 3% post September quarter earnings")
Shares of Infosys was up 3.5% to Rs 721 on the BSE in early morning trade after the company reported a mixed performance with a strong revenue beat but disappointing margin performance for the second quarter of the current financial year 2018-19 (FY19).
In the second quarter ended September 30, 2018 (Q2FY19), Infosys' revenue and net profit were ahead of analysts' expectation. The company reported Rs 41.1 billion in net profit, a growth of 10.3%, compared to the year-ago period. Net profit grew 13.78% sequentially.
Revenue for the period, at Rs 206.09 billion, showed a healthy growth rate of 17.3% on a year-on-year (YoY) basis. Its dollar revenue was at $29.21 billion, a growth rate of 7.1% on YoY basis and 3.2% sequentially.
Infosys’ revenue grew 4.2% quarter on quarter (QoQ) in constant currency (CC) terms, against an analyst estimate of 2.8%-3.5%. Q2FY19 EBIT (earnings before interest and tax) margin at 23.7% is below street estimates of 24.1% to 27.2%.
“Infosys revenue growth was driven by growth in financial services (after two-quarters of sluggish growth), retail and manufacturing verticals. The company had one of the best order bookings in Q2FY19 with USD2bn+ large deal wins, of which >60% is net new business,” analysts at Antique Stock Broking said in result review.
Management is positive on the demand outlook across verticals and geographies and expects the growth momentum to continue barring the seasonal weakness in December quarter. Despite the revenue beat, robust outlook and deal wins, company has not revised up the FY19 CC revenue guidance of 6%-8%. Mid-point of guidance implies flat QoQ revenue growth over 3QFY19-4QFY19. We believe that the guidance is conservative and revenue growth will be at the higher end of guidance, the brokerage firm said with ‘buy’ rating on the stock and target price of Rs 810 per share.
Meanwhile, Infosys has fixed October 27, 2018, as the record date for the purpose of payment of interim dividend of Rs 7 per share and October 30, 2018, as payment date.
At 09:43 am; Infosys was trading 2.3% higher at Rs 712 on the BSE, as compared to 0.79% rise in the S&P BSE Sensex. A combined 6.37 million equity shares changed hands on the counter on the NSE and BSE so far.
In the second quarter ended September 30, 2018 (Q2FY19), Infosys' revenue and net profit were ahead of analysts' expectation. The company reported Rs 41.1 billion in net profit, a growth of 10.3%, compared to the year-ago period. Net profit grew 13.78% sequentially.
Revenue for the period, at Rs 206.09 billion, showed a healthy growth rate of 17.3% on a year-on-year (YoY) basis. Its dollar revenue was at $29.21 billion, a growth rate of 7.1% on YoY basis and 3.2% sequentially.
Infosys’ revenue grew 4.2% quarter on quarter (QoQ) in constant currency (CC) terms, against an analyst estimate of 2.8%-3.5%. Q2FY19 EBIT (earnings before interest and tax) margin at 23.7% is below street estimates of 24.1% to 27.2%.
“Infosys revenue growth was driven by growth in financial services (after two-quarters of sluggish growth), retail and manufacturing verticals. The company had one of the best order bookings in Q2FY19 with USD2bn+ large deal wins, of which >60% is net new business,” analysts at Antique Stock Broking said in result review.
Management is positive on the demand outlook across verticals and geographies and expects the growth momentum to continue barring the seasonal weakness in December quarter. Despite the revenue beat, robust outlook and deal wins, company has not revised up the FY19 CC revenue guidance of 6%-8%. Mid-point of guidance implies flat QoQ revenue growth over 3QFY19-4QFY19. We believe that the guidance is conservative and revenue growth will be at the higher end of guidance, the brokerage firm said with ‘buy’ rating on the stock and target price of Rs 810 per share.
Meanwhile, Infosys has fixed October 27, 2018, as the record date for the purpose of payment of interim dividend of Rs 7 per share and October 30, 2018, as payment date.
At 09:43 am; Infosys was trading 2.3% higher at Rs 712 on the BSE, as compared to 0.79% rise in the S&P BSE Sensex. A combined 6.37 million equity shares changed hands on the counter on the NSE and BSE so far.
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