IT stocks gain after Infosys increases FY 2016 revenue guidance

Seven IT stocks rose by 0.06% to 10.17% at 13:01 IST on BSE after IT major Infosys raised its full year revenue growth guidance in dollar terms at the time of announcing its Q1 June 2015 results during market hours today, 21 July 2015.

The BSE IT index was up 4.79% at 11,210.90 and was the top gainer among the sectoral indices on the BSE. It outperformed the Sensex, which was up 0.03% at 28,429.57

Infosys (up 10.17%), HCL Technologies (up 3.99%), Wipro (up 2.84%), Tech Mahindra (up 2.93%), Oracle Financial Services Software (up 0.06%), Hexaware Technologies (up 1.35%) and MphasiS (up 1.43%) rose. TCS shed 0.23%.

IT major Infosys raised its full year revenue growth guidance in dollar terms at the time of announcing its Q1 June 2015 results during market hours today, 21 July 2015. Infosys now expects its revenue to grow 7.2%-9.2% in dollar terms for the year ending 31 March 2016 (FY 2016). At the time of announcing Q4 March 2015 results in April 2015, Infosys had forecast 6.2% to 8.2% 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 in rupee terms. Infosys now expects its revenue to grow 11.5%-13.5% in rupee terms for the year ending 31 March 2016 (FY 2016). At the time of announcing Q4 March 2015 results in April 2015, Infosys had forecast 8.4%-10.4% growth in the company's revenue in rupee terms for FY 2016. The revised guidance is based on rupee dollar exchange rate of 63.65.

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) fell 2.1% to Rs 3030 crore on 7% rise in revenue to Rs 13411 crore in Q1 June 2015 over Q4 March 2015. The result was announced before market hours today, 21 July 2015.

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