Saturday, 13 July 2013

Infosys shares hit 3-month high post Q1 results

NEW DELHI: Shares of IT bellwether Infosys rallied 15% to hit its fresh 3-month high, its highest level since May 31, in morning trade as the sentiment turned bullish after the company left FY14 sales growth guidance in dollar terms unchanged at 6-10%.

At 09:20am, Infosys pared some of the morning gains and was trading 12.4% higher at Rs 2,840. It had hit a low of Rs 2,779.40 and a high of Rs 2,905 in trade today.

Reacting to the Infosys results, the BSE IT index rose over 7% to hit its fresh 52-week high of 6925.25. TCS and Wipro gained more than 2% each post Infosys Q1 earnings.

Infosys sees FY14 revenue growing at 13-17% in rupee terms.

The company reported consolidated net profit at Rs 2,374 crore for the quarter ended June 2013, down 0.8%, against Rs 2,394 crore in previous quarter. Sales for the quarter was at Rs 11,267 crore, up 7.7%, as compared to Rs 10,454 crore.

"Despite facing an uncertain macro environment, changing regulatory regime and a volatile currency environment, we have done well in Q1 and are cautiously optimistic about rest of the year," said SD Shibulal, CEO and managing director.

"On face of it Infosys Q1 numbers looks to turnaround happening in the company. Due to huge build-up of shorts already in the system, traders can look for a target of Rs 2,850 in next 1-2 months," said AK Prabhakar, Sr VP, Equity Research at Anand Rathi Equities.

"Management use of its massive cash chest will guide the stock move in medium to long-term," added Prabhakar.

Infosys management is cautiously optimistic about rest of the year. It has added 66 clients in and 10,138 employees in June quarter.

Its consolidated revenue in dollar terms i

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