Infosys Surges 6% On Solid Q4 Numbers; Good Guidance

Business

oi-Sunil

By Sunil Fernandes

Published: Monday, April 18, 2016, 10:34 [IST]

Shares in Infosys surged 6 per cent in trade today, as markets cheered a solid set of results reported by the company.

The stock was up Rs 73, at Rs 1244 on the National Stock Exchange. The markets cheered margins growth, revenue growth and the strong guidance of the company for FY 2016-17.

The net profits of Infosys for the quarter ending March 31, 2017, came in at Rs 3597 crores, which beat estimates. Most analysts had expected the net profits to be around the Rs 3500 crores mark. Check share price of Infosys

The margins of the company also surprised positively. The earnings Before Interest and Tax, more popularly known as EBIT margins were placed at 25.5 per cent. This was much higher than 24.9 per cent QoQ and was the highlight of the results.

The Q4 revenues of Infosys was slightly above estimates at Rs 16,550 crores. It was Rs15,902 crores, up 4 per cent QoQ.

The revenue guidance of the company was what really boosted investor sentiments. The company has given a dollar revenue guidance for FY 2016-17 at 11.8 to 13.8 per cent.

In constant currency terms Infosys has guided for a revenue growth of 11.5 to 13.5 per cent for FY 2016-17.

This is much higher than what NASSCOM has guided for the industry and should boost investor sentiments.

The employee attrition at the company also dropped.

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