Infosys net profit beats estimates, revenue guidance hiked, shares log biggest jump since 2001
Information technology major Infosys on Friday pulled off a surprise by raising its revenue guidance for this fiscal to at least $7.45 billion from its previous projection of $7.34 billion, sending its shares surging by nearly 17% on the BSE. Infosys also posted a better than expected net profit on the back of eight large outsourcing deals – valued at $731 million -- won during the October-December quarter. Its performance in Europe was commendable; winning 13 new clients and growing the geography by over 16% in revenues during the quarter.
Infosys' shares on the BSE rocketed 16.9%, closing at Rs 2712.60 on Friday. This is its biggest gain since April 2001. Its share price in 2012 had slipped by 16.2% following a series of setbacks, even as its closest rival TCS had surged by 8.2%. In that sense, it is a big turn around in fortunes for Infosys.
The new forecast represents a 6.6% revenue rise from a year earlier. The growth outlook is inclusive of $104 million in revenue from Lodestone, a Swiss-based consulting firm that it acquired last year. The company's net profit stood at $434 million (Rs 2,369 crore) for the quarter, registering a flat growth sequentially. Analysts had expected Infosys to finish with a lower income.
JP Morgan in a note expressed surprise. “We are positively surprised by Infosys' performance and need to study the durability of the company's comeback,” it stated. Some of the analysts had expected Infosys to pare
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