Infosys hits record high after strong revenue growth guidance for FY 2017

Infosys jumped 7.16% to Rs 1,256 at 9:19 IST on BSE after the company at the time of announcing Q4 March 2016 results forecast revenue growth for the year ending 31 March 2017 that would exceed growth for the software services industry.

The result was announced on Friday, 15 April 2016, when the stock market was closed for a holiday. The results are as per International Financial Reporting Standards (IFRS).

Meanwhile, the S&P BSE Sensex was up 112.51 points or 0.44% at 25,739.26.

On BSE, so far 1.52 lakh shares were traded in the counter as against average daily volume of 3.19 lakh shares in the past one quarter. The stock hit a high of Rs 1,267.90 so far during the day, which is a record high for the counter. The stock hit a low of Rs 1,241 so far during the day. The stock had hit a 52-week low of Rs 932.55 on 10 July 2015. The stock had underperformed the market over the past one month till 13 April 2016, rising 2.59% compared with Sensex's 3.68% rise. The scrip had, however, outperformed the market in past one quarter, gaining 8.29% as against Sensex's 3.11% rise.

The large-cap company has equity capital of Rs 1148.47 crore. Face value per share is Rs 5.

Infosys forecast revenue growth for the year ending 31 March 2017 (FY 2017) that would exceed growth for the software services industry. Infosys said that it expects revenue growth of 11.8%-13.8% for FY 2017 in US dollar terms. In constant currency terms, the company has forecast 11.5%-13.5% growth in revenue for FY 2017. Infosys' revenue growth forecast is higher than 10% to 12% growth for the IT outsourcing sector for FY 2017 forecast by IT industry body National Association of Software and Services Companies (Nasscom) in February this year. Infosys has forecast 12.7%-14.7% growth in revenue in rupee terms for FY 2017 based on rupee dollar exchange rate of 66.26 as on 31 March 2016. The rupee dollar exchange rate stood at 66.64 on 13 April 2016.

After the strong revenue growth guidance for FY 2017, Infosys' ADR jumped 8.4% to settle at $20 on the New York Stock Exchange on Friday, 15 April 2016. Infosys' consolidated net profit rose 3.8% to Rs 3597 crore on 4.1% growth in revenue to Rs 16550 crore in Q4 March 2016 over Q3 December 2015.

Infosys said that the employee attrition reduced further in Q4 March 2016. On annualized basis, the employee attrition rate declined to 17.3% in Q4 March 2016 from 18.1% in Q3 December 2015.

Infosys is a global leader in consulting, technology and outsourcing solutions.

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