Q3 Numbers Fail To Cheer Infosys Scrip
The action in Infosys Technologies' counter following its third quarter (Q3) results was in contrast to sentiments before the results, as the company came out with no major surprises.
The stock price of the country's second-largest software company, in terms of market capitalisation, ended lower by 4 per cent at Rs 4,254.20 on the Bombay Stock Exchange. The stock, however, recovered sharply from the day's low of Rs 4,188. Around 7.31 lakh Infosys shares changed hands.
The scrip, in fact, had risen sharply over the last few weeks in a run up to its results. In five trading sessions, from its close of Rs 4,024.45 on January 1, the scrip gained 19.8 per cent to Rs 4,825 on January 8. That was followed by the stock plunging 8.17 per cent in a single session on the eve of the results, Wednesday, to Rs 4,430.75.
"Investors expecting an upward revision of the guidance for the full year FY 2002 were in for disappointment as the company, in fact, reduced its earnings per share guidance for FY 2002 to Rs 120-122 against the earlier Rs 120-123," Dealers said.
The billing rates of the company continued to be under pressure with a 3.2 per cent price decline in the third quarter over the second quarter. The fall in billing rates was, however, offset by growth in volumes by 3.4 per cent resulting in a 0.2 per cent growth in software revenues in dollar terms for the quarter compared to the previous quarter.
"This quarter was one of the most challenging, both for Infosys and the Indian software industry," said N R Narayana Murthy, chairman and CEO. "Software spending continued to weaken globally and the events of 11 September created a lot of uncertainty in the external environment. Short-term uncertainties continue to remain and we are cautious about long-term opportunities," he added.
However, the company continued with the addition of employees. The gross addition in employees at 219 for the quarter, including 151 lateral hires - net addition in employees at 109 for the quarter.
The company added 33 new customers during the quarter, including SunAmerica Inc and Aizawa Koatzu.