Infosys gains on upward revision in FY14 guidance

The stock was up nearly 3% at Rs 3,219 on the Bombay Stock Exchange.

Infosys is trading higher by 3% at Rs 3,219 on the BSE after the information technology (IT) major revised its FY14 revenue guidance to 9-10% from 6-10% in dollar terms.

The company has also upward revised in rupee revenue guidance growth from 13-17% year-on-year to 21-22% in FY14. 

The stock opened at Rs 3,320 and hit a high of Rs 3,360, its highest level since January 2011, in early morning deals on BSE.

Meanwhile, the country’s second-largest software exporter has reported a lower than expected net profit growth for the quarter ended September 2013 as demand for information technology services slowed.

Infosys has reported 1.4% quarter-on-quarter (qoq) growth in its consolidated net profit at Rs 2,407 crore for the quarter ended September as compared to Rs 2,374 crore in June quarter. Revenues however, grew by 15% at Rs 12,965 crore on qoq basis.

Analyst on an average had expected consolidated net profit of Rs 2,589 crore on revenues of Rs 12,752 crore for the recently concluded quarter.

"During the quarter we witnessed broad-based volume growth, robust client additions, five large deal wins and increased sales momentum of our big data and cloud offerings. This growth is a result of our focus on execution, which helps our clients achieve their objectives." said S. D. Shibulal, CEO and Managing Director.

"We will continue with planned investments and initiatives to explore new avenues of growth. We remain watchful of the sustainability of improving global economic fundamentals", he added.

“The global currency market remains volatile with the Indian Rupee depreciating by 11% during the quarter. We have an active hedging program to minimize its impact on our margins. We will continue our focus on optimizing costs and enhancing the efficiency of our operations,” said Rajiv Bansal, Chief Financial Officer.

Meanwhile, the board has declared an interim dividend of Rs 20 per equity share for the current financial year 2013-14 as against Rs 15 per equity share interim dividend paid in previous fiscal.