Infosys rallies as Q3 beats forecast

The stock moved higher by 5% to Rs 1,140, bouncing back 8% from intra-day's low on the NSE in otherwise weak market.

Shares of Infosys surged 5% to Rs 1,140, bouncing back 8% from intra-day’s low on the NSE, after the company reported a better-than-expected 1.98% quarter on quarter (q-o-q) growth in consolidated net profit at Rs 3,465 crore for the third quarter ended December 31, 2015 (Q3FY16). Revenues grew 1.7% at Rs 15,902 crore on sequential basis.

Analysts on an average had expected profit of Rs 3,343 crore on revenues of Rs 15,735 crore for the quarter.

Infosys also increased revenue guidance to 12.8%-13.2% from 10%-12% in constant currency for the fiscal year ending March 31, 2016 (FY16).

Revenue guidance increased to 16.2%-16.6% in INR terms and to 8.9%-9.3% in USD terms based on the exchange rates as of December 31st, 2015, it added.

Infosys while announcing September 2015 results had said revenues are expected to grow 6.4%-8.4% in USD terms.

“The healthy volume growth this quarter has been encouraging. The lesser working days and our investments into additional trainees resulted in softer pricing and utilization for the quarter.” said U B Pravin Rao, President & COO.

At 09:46 a.m. the stock was up 4.2% at Rs 1,129 on the NSE as compared to 1% decline in the Nifty 50 index. A combined 5.66 million shares changed hands on the counter on the NSE and BSE.