It's been a good first quarter for new Infosys CEO, Vishal Sikka, who tookover from S D Shibulal earlier. The Q2 results were cheered by analysts and stock market investors. Here's why analysts are gung-ho on the results for the quarter ending June 30, 2014.
Net profits a pleasant surprise
Consolidated net profits for the quarter ending June 30, 2014 came in at Rs 3096 crores. Analysts had pegged their estimates at around Rs 2800 crores. In fact, very few analysts expected the company to breach the Rs 3,000 crores mark.
Margins see improvement
The EBIT Margin was a healthy 100 basis points over and above the previous quarter. The EBIT margin came in at 26.1 per cent as against 25.1 per cent in the previous quarter. The company managed to improve margins on account of better control over employee costs and improving efficiencies.
Dollar revenues surprise
Dollar revenues at $2201 million was also way above analysts estimate with a growth of 3.1%. In fact, most of analysts had estimated a flat dollar revenue growth.
Bonus shares and interim dividend
Infosys has declared bonus shares in the ratio of 1:1 along with an interim dividend of Rs 30 per share. Pretty decent way to reward shareholders after a good performance.
A stock pile of cash
Liquid assets including cash and cash equivalents surge to $5,444 million as on September 30, 2014 as compared to $4,943 million as on June 30, 2014.
Investors give a big thumbs-up
Shares in Infosys surged a huge 5.4 per cent in trade on the National Stock Exchange. Every analyst on television described the results as "better than expectations". the stock may see some more upside in the coming days.