Net profits beat estimates

The third quarter of the year is always considered as a weak quarter for most IT companies. However, Infosys beat estimates and reported a good set of quarterly numbers. The company reported a net profit of Rs 3,708 crores, as against expectations of Rs 3,537 crores. The net profits were on the higher side which was good news for the company.

Operating margins improve

Operating margins at the company also improved to 25.1 per cent. This came as a slight surprise as the company was able to hold onto pricing. Also, employee costs did not add to the pricing pressure worries. If the company manages to hold onto margins it might do significantly better in the coming days.

Attrition rates decline

Attrition declined sequentially by 0.8% on standalone basis and 1.6% on consolidated basis. This is much better than what the company has been seeing in the past. Even TCS managed to show good a decline in its attrition rate, which is good for the IT industry as a whole. In the previous quarters the company has reported much higher attrition rates.

Revenue guidance revised

The company has revised its revenue guidance to 8.4%- 8.8% from 8 -9.0% in constant currency terms seen earlier. From the initial look of it, the revenue band seems to be revised with the higher range being cut a little and the lower range being hiked a little.

Company appoints Ravikumar S

Infosys has appointed Ravikumar S as Deputy Chief Operating Officer reporting to Pravin Rao, Chief Operating Office. The rejig at the company is good, given the fact that several senior officials have left the company in the past.

Stocks falls marginally

The shares of Infosys which had rallied as much as 3 per cent, following the results saw a sharp downward trend thereafter. The shares were last trading 2 per cent lower at Rs 980 per share on the National Stock Exchange. Check stock quote here