Infosys slips after lowering FY 2016 dollar revenue guidance

Infosys fell 2.75% to Rs 1,135.70 at 9:53 IST on BSE after the company lowered its full year revenue growth guidance in dollar terms at the time of announcing its Q2 September 2015 results during market hours today, 12 October 2015.

Meanwhile, the BSE Sensex was up 43.22 points, or 0.16% at 27,122.73.

On BSE, so far 7.68 lakh shares were traded in the counter, compared with an average volume of 1.95 lakh shares in the past one quarter.

The stock hit a high of Rs 1,219 so far during the day, which is also a record high for the counter. The stock hit a low of Rs 1,108.90 so far during the day. The stock hit a 52-week low of Rs 900 on 10 October 2014.

The stock had outperformed the market over the past one month till 9 October 2015, rising 7.29% compared with 5.29% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 24.54% as against Sensex's 1.79% decline.

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

Infosys lowered its full year revenue growth guidance in dollar terms at the time of announcing its Q2 September 2015 results during market hours today, 12 October 2015. Infosys now expects its revenue to grow 6.4%-8.4% in dollar terms for the year ending 31 March 2016 (FY 2016). At the time of announcing Q1 June 2015 results, Infosys had forecast 7.2%-9.2% growth in the company's revenue in dollar terms for FY 2016.

Thanks to weakness of the rupee against the dollar, Infosys has raised full year revenue growth guidance in rupee terms. Infosys now expects its revenue to grow 13.1%-15.1% in rupee terms for the year ending 31 March 2016 (FY 2016). At the time of announcing Q1 June 2015 results, Infosys had forecast 11.5%-13.5% growth in the company's revenue in rupee terms for FY 2016. The revised guidance is based on rupee dollar exchange rate of 65.59.

Infosys, however, kept revenue growth guidance for FY 2016 unchanged at 10%-12% in constant currency terms.

Infosys' consolidated net profit under International Financial Reporting Standards (IFRS) rose 12.1% to Rs 3398 crore on 8.9% rise in revenue to Rs 15635 crore in Q2 September 2015 over Q1 June 2015. The result was announced during market hours today, 12 October 2015.

Infosys' COO U. B. Pravin Rao said that the company had strong all-round growth during the quarter driven by recent initiatives around service differentiation, improvement in client mining and higher focus on winning large deals. Increase in revenue productivity was significant, volume growth was robust, client metrics and utilization improved while attrition remained stable, Rao said.

Infosys' CFO Rajiv Bansal said that the company's relentless focus on operational efficiencies has resulted in increase in operating margins despite higher variable payouts. The impact of significant currency volatility was effectively mitigated by its proactive hedging program, Bansal said.

Meanwhile, Rajiv Bansal stepped down as Chief Financial Officer (CFO) of Infosys effective 12 October 2015 and resigned from the services of the company effective 31 December 2015. Ranganath M. D. has been appointed as CFO effective 12 October 2015.

Liquid assets including cash and cash equivalents, available-for-sale financial assets and government bonds were Rs 32099 crore as on 30 September 2015 as compared to Rs 30235 crore as on 30 June 2015.

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

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