Infosys steals the show

Posts 50% rise in profits, Ups FY07 growth at 40%


It was another blast at Mumbai, this time at the Dalal Street where Infosys Technologies rocked the bourses with its scintillating first quarter results. The blast was so powerful that it affected other tech stocks too and send them soaring in anticipation of a general uptrend in the technology sector. Infosys, the technology bellweather, today beated the market expectation by announcing 50% rise in net profit accompanied by a 45% rise in Revenue.

One of the surprise of today's announcement was a upward revision in the FY07 guidance by the company. Infosys is considered to be conservative in giving the guidance and hence a sharp increase from the guidance given at the year end in March has taken everybody by surprise.
The strong results were backed by improved business as well as depreciating rupee.

Highlights of Infosys Q1 Results
Net Income at Rs.3015 Crore for Q1
Net Profit at Rs. 794 Crore
Q1 EPS at Rs.28.71
38 New clients were added during the quarter
8000 New employess during the quarter.

Business outlook for FY07 :
Income for Fy07 expected at Rs.13350 crore , YOY growth of 40%
EPS expected to be in range of Rs. 124.51 -125.74.

The stock was up 8% from its yesterday's claose at the time of writing this post.
Investors should note that the stock is going to be ex-bonus from 14th July,2006. The company had earlier annouced a bonus of 1:1.

Given the excellent set of results and robust guidance, the stock price is expected to move up in tandem. Investment Guru is of the view that investors should have this stock in their portfolio with a long term perspective in order to generate an equally excellent return.

Happy Investing !