6 takeaways from the poor Infosys numbers

Business

oi-Sunil

By Sunil Fernandes

Updated: Friday, April 12, 2013, 12:45 [IST]

After raising expectations with a good set of Q3 FY 2013 numbers, Infosys has disappointed again with a poor set of numbers. The company's results are now becoming increasingly volatile and analysts are going horribly wrong in predicting the company's results. Here's why the Infy numbers disappointed the street.

1) Poor dollar revenues

Dollar revenues came in at just $1938 million for Q4FY 2013, as against analyst expectations of $1987 million.

2) EBIT margins disappointing

The EBIT margin was just 23.55 per cent, as against market expectations of 25 per cent. The company has been willing to sacrifice its high margin business for volumes.

3) Revenue guidance way lower then NASSCOM industry estimates

The company has guided for a growth in revenues of 6-10 per cent for FY 2014, as against NASSCOM projected industry growth of 12-14 per cent.

4) Net revenue boosted by other income

The company's net profit, which came in at Rs 2394 crores was way above estimates, but, boosted by other income.

5) No EPS guidance for 2014

As in the past the company has not provided for an EPS guidance for 2014, which would add to worries over the highly unpredictable nature of the company's results.

6) Stock down 18 per cent

The Infosys stocks is down 18 per cent in early trade, dragging stock indices lower.

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