1) PAT beats estimates
The company's profit after tax (PAT) for Q1 FY 2014 has been marginally higher then what analysts were expecting. The consensus estimates were around Rs 2300 crores, but the company reported PAT of Rs 2374 crores.
2) EBIT margin better
The EBIT margin was 23.64 per cent for Q1 2014, which was again better then analysts estimates.
3) Dollar guidance unchanged
The dollar revenue guidance remained unchanged for FY 2014 at 7-10%, as against analysts estimate of a further downside in guidance by the management. Though one must admit that the guidance is still below the NASSCOM growth estimates for the industry.
4) Cloud and big data doing well
The company's focus on Cloud and Big Data as new growth areas continue to yield results. The Cloud and Big Data business has executed over 100 engagements.
5) Company adds new clients
The company added 66 clients during Q1 2014. The company says it remains cautiously optimistic about the future.
6) Margins maybe under pressure due to wage hike
The company says that its margins maybe under pressure in the next few quarters due to a wage hike. The management in a press conference has said that margins could be lower by 300 basis points in the next few quarters.
7) Markets give a thumbs-up to the results
Markets have given a thumbs-up to the results with the stock up 13% in trade. Most of the big foreign fund houses are likely to revise their outlook for the company.