Infosys surprises with aggressive forecast
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 R2,712.60 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 Tata Consultancy Services had surged by 8.2%. In that sense, it is a big turnaround 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 consulting firm it acquired last year. The company’s net profit stood at $434 million (R2,369 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 the general mood. “We are positively surprised by Infosys' performance and need to study the durability of the company's comeback,” it stated.
Some analysts had expected Infosys to pare its annual revenue growth to 3.3% after the company had said last
Be the first to comment.
