Infosys shares jump 3 percent as Q4 results better than expected

Infosys, India’s second largest software exporter, reported a better than expected net profit for January-March, while its dollar revenue came in line with the management’s recent warning and guided for a slightly better projection for the next year. The company’s margins witnessed a better than expected rise too, which came as a relief to investors who were expecting a bad earnings in the seasonally weak margins. The company reported a consolidated net profit of Rs 2992 crore, up 4 percent quarter on quarter, compared with a CNBC-TV18 poll of Rs 2,835 crore. Its rupee revenue stood at Rs 12,875 crore, lower than the poll estimate of Rs 12,962 crore. The dollar revenue at $2,092 million, down 4 percent on quarter. This, however, was in line with the management’s comments. [caption id=“attachment_1480507” align=“alignleft” width=“380”]  Reuters[/caption] The margins stood at 25.48 percent, about 47 basis points higher than the quarter ago figure. Companny CEO SD Shibulal has guided for a 7-9 percent increase in dollar revenue for the next year. Shares of the companny were up 3 percent reacting to the results. “I am pleased that we have been able to double our growth rate for the full year compared to last year, though performance in the last quarter of FY 14 has been disappointing,” said S D Shibulal, CEO and Managing Director. “We have guided for a revenue growth of 7%-9% next year and remain firmly focused on building the growth momentum by making all the necessary investments in our business.” Chief Financial Officer Rajiv Bansal said the company’s cash and cash equivalents crossed Rs 30,000 crore during the quarter. “We have increased the dividend payout ratio to up to 40% of post-tax profits effective FY14 to enhance returns for our shareholders,” he said in the press release. Analysts told CNBC-TV 18 that the profits and margins are positive. However, expectations of a special dividend have not been realised. “Results are a bit of a relief. There were expectations that the results could be ugly but that has not happened. A great set of numbers,” Dipan Mehta, member, BSE and NSE, told the TV channel. Valuations are reasonably attractive since the stock has already staved off 15 percent from recent highs, he said. According to the press release, Infosys and its subsidiaries added 50 clients during the quarter and 238 during the year. On a gross basis, the company and its arms added 10,997 employees during the quarter and 39,985 during the year. As on 31 March, they had 160,405 staff. This story was originally published in Firstbiz