Infosys ripe for re-rating after strong performance in June quarter

While the company's revenue grew by 8.5 per cent year-on-year to Rs 23,665 crore, its profit before tax (pre-tax profit) was up by 12.1 per cent year-on-year

Infosys’ June 2020 quarter (Q1) results are the best, so far, in the sector, not only in terms of the firm beating the Street’s expectations but also the management's revenue guidance. And this improves the earnings and re-rating potential of the stock.

While the company’s revenue grew 8.5 per cent year-on-year (YoY) to Rs 23,665 crore, its profit before tax was up by 12.1 per cent YoY to Rs 5,792 crore. Analysts had pegged these at Rs 22,966 crore and Rs 5,116 crore, according to Bloomberg. The higher bottom-line growth was led by a 220 basis point YoY expansion in operating