Infosys net profit for Q3 2013-14 at Rs 2875 crores; beats estimates

Business

oi-Sunil

By Sunil Fernandes

Updated: Friday, January 10, 2014, 15:28 [IST]

Software and IT major Infosys, reported profit after tax that beat analysts and street estimates, thanks to an expansion in margins.

The company reported a net profit of Rs 2875 crores for FY Q3 2014, beating street estimates which were expecting net profits at around Rs 2700 crores. Revenues came in at Rs 13,026 crores, as against Rs 10,424 crores in the corresponding period of last year.

The earnings before interest and tax rose to Rs 3259 crores, even as margins expanded, due to cost cutting. The EBIT margins have come in at a healthy 25%

Dollar revenues at $2100 million was slightly lower then estimates.

What may go down well with the market is the fact that the FY dollar revenue guidance has been hiked to 11.5 per cent to 12 per cent.

"The year ahead looks exciting for the IT services industry. We believe the global economic environment has improved and our clients are gaining confidence to invest in their strategic initiatives," said S. D. Shibulal, CEO and Managing Director. -We continue to differentiate ourselves to seize growth opportunities. The recent changes in organizational structure will enable us to strengthen client relationships and increase market share.

"During the quarter, we saw early but promising results of our initiatives to increase efficiency in our operations‖ said Rajiv Bansal, Chief Financial Officer. -We continue to remain focused on making investments necessary to secure and grow our future."

During the quarter Infosys and its subsidiaries added 54 clients during the quarter. Gross addition of 6,682 employees for the quarter by Infosys and its subsidiaries. The company had 158,404 employees as on December 31, 2013 for Infosys and its subsidiaries.

The stock may open higher in trade on strong dollar revenues guidance and expansion in margins.

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