BANGALORE (Reuters) - Infosys defied some analysts' expectations and preserved its revenue growth forecast for the total year, a symbol that India's second largest computer code services bourgeois was assured it may regain lost market share.
Most analysts had expected Infosys to take care of its forecast for 6-10 p.c revenue growth for the present 2013/14 fiscal year, however Morgan Stanley raised doubts last week, spoken communication the corporate would cut estimates to 4-6 p.c.
Investors cheered the forecast, causation Infosys shares nearly fifteen p.c higher to their loftiest in nearly 3 months.
"Generally you'll conclude that the worst is over for them however it remains to be seen however quickly they will pass though here," aforementioned Phani Sekhar, fund manager at Mumbai-based Angel Broking, that holds shares in Infosys.
"We ought to watch whether or not the management sees any air pockets going forward."
Infosys's revenue growth forecast still lags the 12-14 p.c growth outlook for the arena created by native IT business lobby National Association of computer code and Services firms, lightness the challenges facing the company's management.
The company conjointly needs to regain investors' trust its ability to deliver robust earnings when nearly 2 years of unsatisfying results.
Last quarter, Infosys forecast full-year sales growth that incomprehensible analyst expectations by a margin of up to fifty p.c, causation its shares down the maximum amount as concerning twenty p.c.
"Infosys has crushed our down expectations and its steering has been maintained," aforementioned Sandip Sabharwal, chief operating officer of Portfolio Management Services at Mumbai-based brokerage Prabhudas Lilladher that holds Infosys stock.
Most analysts had expected Infosys to take care of its forecast for 6-10 p.c revenue growth for the present 2013/14 fiscal year, however Morgan Stanley raised doubts last week, spoken communication the corporate would cut estimates to 4-6 p.c.
Investors cheered the forecast, causation Infosys shares nearly fifteen p.c higher to their loftiest in nearly 3 months.
"Generally you'll conclude that the worst is over for them however it remains to be seen however quickly they will pass though here," aforementioned Phani Sekhar, fund manager at Mumbai-based Angel Broking, that holds shares in Infosys.
"We ought to watch whether or not the management sees any air pockets going forward."
Infosys's revenue growth forecast still lags the 12-14 p.c growth outlook for the arena created by native IT business lobby National Association of computer code and Services firms, lightness the challenges facing the company's management.
The company conjointly needs to regain investors' trust its ability to deliver robust earnings when nearly 2 years of unsatisfying results.
Last quarter, Infosys forecast full-year sales growth that incomprehensible analyst expectations by a margin of up to fifty p.c, causation its shares down the maximum amount as concerning twenty p.c.
"Infosys has crushed our down expectations and its steering has been maintained," aforementioned Sandip Sabharwal, chief operating officer of Portfolio Management Services at Mumbai-based brokerage Prabhudas Lilladher that holds Infosys stock.
"One should not be too happy tho' for the stock as there square measure lots of management and structural changes that require to happen."
GRAPHIC - Infosys Q1 results, Go to http://link.reuters.
An attempt to earn an even bigger share of revenue from proprietary software package, at the expense of IT outsourcing contracts, saw Infosys losing bent on rival Tata practice Services .
Infosys brought back founder Narayana Murthy as govt chairman on Gregorian calendar month one to revive the corporate, and his efforts might get a lift from forecasts that 2014 can see the strongest demand for technology from U.S. government establishments and businesses since the 2008 international monetary crisis.
On Friday, Infosys reported a three.7 p.c year-on-year increase in its consolidated profits for the primary quarter, in line with analysts' expectations.
"Despite facing associate unsure macro surroundings, dynamic regulative regime and a volatile currency surroundings, we've done well in Q1 and square measure cautiously optimistic regarding remainder of the year," CEO S.D. Shibulal same during a statement.
Infosys additionally same its margins could also be affected in future quarters owing to antecedently proclaimed compensation will increase. In June, the corporate had same it'd raise salaries for all eligible workers.
GRAPHIC - Infosys Q1 results, Go to http://link.reuters.
An attempt to earn an even bigger share of revenue from proprietary software package, at the expense of IT outsourcing contracts, saw Infosys losing bent on rival Tata practice Services .
Infosys brought back founder Narayana Murthy as govt chairman on Gregorian calendar month one to revive the corporate, and his efforts might get a lift from forecasts that 2014 can see the strongest demand for technology from U.S. government establishments and businesses since the 2008 international monetary crisis.
On Friday, Infosys reported a three.7 p.c year-on-year increase in its consolidated profits for the primary quarter, in line with analysts' expectations.
"Despite facing associate unsure macro surroundings, dynamic regulative regime and a volatile currency surroundings, we've done well in Q1 and square measure cautiously optimistic regarding remainder of the year," CEO S.D. Shibulal same during a statement.
Infosys additionally same its margins could also be affected in future quarters owing to antecedently proclaimed compensation will increase. In June, the corporate had same it'd raise salaries for all eligible workers.
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