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Infosys Soars on Q3 Profit Beat, Sales Guidance

Infosys reported a profit of Rs 3,250 crore on sales of Rs 13,800 crore in the quarter ended December 31, 2015, beating analyst estimates. Shares in the company jumped over 6 per cent after Infosys maintained its annual sales growth guidance at 7-9 per cent
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Infosys Soars on Q3 Profit Beat, Sales Guidance

Infosys reported a profit of Rs 3,250 crore on sales of Rs 13,800 crore in the quarter ended December 31, 2015, beating analyst estimates. Shares in the company jumped over 6 per cent after Infosys maintained its annual sales growth guidance at 7-9 per cent.

Brokers polled by NDTV estimated Infosys to report a net profit of Rs 3,151 crore on sales of Rs 13,760 crore, which compares with a profit of Rs 3,096 crore on sales of Rs 13,342 crore in the September quarter.

The retention of annual guidance indicates bullishness at time when most IT companies are struggling because of rising strength in the US dollar.

Market analyst Ambareesh Baliga told NDTV that maintenance of growth guidance is good news for investors.

"Infosys result raises the bar for other IT companies that are yet to come out with numbers," Mr Baliga added.

Infosys also topped analyst estimates on other operational parameters. Operating margins jumped to 26.7 per cent in the December quarter as against 26.1 per cent in the previous quarter. Volume growth came in at a robust 4.2 per cent, while employee utilization was highest in 11 years.

"No doubt, it is a good set of numbers, we are pretty happy," said Dhananjay Sinha of Emkay Global.

Infosys was the top gainer in the 50-share Nifty index and drove markets higher. Other IT stocks also gained sharply post Infosys result announcement. The IT sub-index jumped 4 per cent, outperforming the broader Nifty, which was up just 0.5 per cent.

This is the first time Infosys, India's second biggest outsourcer, has reported its quarterly numbers during market hours.

The December quarter is seasonally weak because of holidays in the key markets of North America and Europe, but Infosys seems to have bucked the trend, analysts say.



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