 "Worst over for Infosys but quick recovery key, say experts")
Software services exporter Infosys met expectations on Friday with a 3.7 percent year-on-year increase in quarterly net profit as contract wins and foreign exchange gains boosted earnings.
Consolidated net profit for the fiscal first quarter ended June 30 rose to Rs 2374 crore from Rs 2289 crore in the same year-ago period.
Infosys also maintained its forecast for 6-10 percent revenue growth for the current 2013/14 financial year.
Following are quick comments from analysts.
[caption id=“attachment_950969” align=“alignleft” width=“380”] Reuters[/caption]
PHANI SEKHAR, FUND MANAGER, ANGEL BROKING, MUMBAI
“Generally you can conclude that the worst is over for them but it remains to be seen how quickly they can recover from here. We need to watch whether the management sees any air pockets going forward.
“You can ascribe it to Murthy magic. If they have deviated from their Infosys 3.0 strategy to focus on more mundane work at a lower price to bump up volume, that would be a good strategy and you can expect that kind of pragmatism from Murthy.”
TARUN SISODIA, DIRECTOR, CHANAKYA NITI PVT LTD, MUMBAI
“This is far better than what some people in the market were expecting. The earnings have been pretty volatile in the last few quarters and this time around the expectations were muted given what has happened in the company recently.
Impact Shorts
More Shorts“I think the stock should now go for re-rating.”
SANDIP SABHARWAL, CEO, PORTFOLIO MANAGEMENT SERVICES, PRABHUDAS LILLADHER, MUMBAI
“It’s a good start for earnings season. Infosys has beaten our lowered expectations. Guidance has been maintained and I think rupee guidance would be beaten as well.
“One shouldn’t be too euphoric though for the stock as there are a lot of management and structural changes that need to happen.”
Reuters
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