Infosys rallies on better-than-expected Q3 earnings

Infosys has rallied almost 12% to Rs 2,600 after reporting a better-than-expected consolidated net profit of Rs 2,369 crore for the third quarter ended December 2012 (Q3) against analyst expectation of Rs 2,228 crore.

The stock opened at Rs 2,521 and hit a high of Rs 2,616 on the NSE. A combined 1.93 million shares have changed hands on the counter.

Infosys said its consolidated revenues rose by 5.74% on quarter-on-quarter basis to Rs 10,424 crore during the recently concluded quarter. Meanwhile, the company has upped its full year guidance, expecting revenues of $7.45 billion for the current financial year 2012-13. It sees FY13 EPS (earning per share) outlook at Rs 162.8 and the revenue in FY13 from Lodestone at Rs 568 crore.

“The company able to maintain margins through efficiency improvements despite increased operating expenses and remain focused on making the right investments for profitable and sustainable growth in the longer term", said Rajiv Bansal, chief financial officer.
 
“We have done well in this quarter despite an uncertain environment,” said S. D. Shibulal, CEO and managing director.

“We continue to gain confidence from a strong pipeline of large deals. However, the broader economic environment remains difficult. Even so, we remain cautiously optimistic about the January-March quarter”, he added.