Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Infosys: Routine performance in 3QFY01 - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Jan 9, 2001

    Infosys: Routine performance in 3QFY01

    Beating market performance has become a routine performance for the Indian software major. Infosys has reported a jump (QoQ) in topline by 20% and the bottomline has gone by up 8% in 3QFY01. On a YoY basis the net profit has gone up by 143% (excluding other adjustments) and revenues by 136%.

    The company has beaten the market expectation of a YoY growth of about 115% in revenues and 127% growth in net profit.
    (Rs m) 2QFY01 3QFY01 Change
    Sales 4,461 5,371 20.4%
    Other Income 196 145 -26.1%
    Expenditure 2,697 3,196 18.5%
    Operating Profit (EBDIT) 1,764 2,175 23.3%
    Operating Profit Margin (%) 39.5% 40.5%
    Interest - - -
    Depreciation 242 330 36.2%
    Profit before Tax 1,718 1,989 15.8%
    Tax 178 195 9.9%
    Provision and contingencies - 131
    Profit after Tax/(Loss) 1,540 1,663 8.0%
    Net profit margin (%) 34.5% 31.0%
    Diluted number of shares 66.1 66.1
    Diluted Earnings per share* 93.1 100.6
    P/E (x) 64.5 59.7

    Infosysí excellent performance has been masked by writing off Rs 131 m on account of strategic investment in EC Cubed Inc, a US based provider of B2B e-commerce solutions. The company has filed for liquidation. Had this figure been excluded then net profits QoQ would have been up by 16%.

    Growth (%) Actual Expectations
    Sales 20.0% 18.0%
    Operating profit 23.3% 16.4%
    Net profit* 16.0% 13.4%
    *Excluding extra ordinary items

    Infosysí operating margins have gone up 40.5% and net profit margin excluding extra ordinary item was 33.4% compared to 34.5% in 2QFY01. This was due to fall in other income by 26%. Other income of 2QFY01 included gains from forex Rs 96.8 m, which dropped to Rs 34.4 m in 3QFY01. The other component of interest and others, was Rs 110.3 m for 3QFY01 compared to Rs 98.9 m.

    The improvement in operating margins could be attributed to higher billing rates and operating efficiencies.

    2QFY01 3QFY01
    Employee costs 37.6% 37.2%
    Other expenses 14.8% 14.2%
    Traveling expenses 8.0% 8.2%

    At the current market price of Rs 6,007, Infosys is trading at a P/E multiple of 60 times its 3QFY01 annualised earnings. We had projected revenues of Rs 17,646 m for FY01. For nine-month the company has already clocked sales of Rs 13,387 m. Revenues for 4QFY00 were Rs 2,774 m and a conservative YoY 100% growth would mean sales of Rs 4,548 for the quarter ending March 2001. This indicates that the company would be able to record a growth of more than 100% in both revenues and profits for FY01.



    Equitymaster requests your view! Post a comment on "Infosys: Routine performance in 3QFY01". Click here!


    More Views on News

    Infosys: A Decent Start to FY18 (Quarterly Results Update - Detailed)

    Jul 14, 2017

    Infosys starts FY18 on an encouraging note with a stable performance.

    Infosys: A Flat End to FY17 (Quarterly Results Update - Detailed)

    Apr 13, 2017

    Infosys ends FY17 with a 7% QoQ fall in net profit for the March quarter.

    Infosys: A Decent Quarter (Quarterly Results Update - Detailed)

    Jan 13, 2017

    Infosys has reported a 0.2% QoQ decrease in the topline and an increase of 4.6% QoQ in the bottomline for the quarter ended December 2016.

    Tech Mahindra: Our Revised View (Quarterly Results Update - Detailed)

    Aug 2, 2017

    A better than expected turnaround in performance results in a change in view.

    Wipro: A Decent Start to the Year (Quarterly Results Update - Detailed)

    Jul 27, 2017

    Digital services drive growth for Wipro in 1QFY18.

    More Views on News

    Most Popular

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    The Most Profitable Investment in the History of the World(Vivek Kaul's Diary)

    Aug 8, 2017

    'Yes, it looks like a bubble. And, yes, it's like buying a lottery ticket. But there's something happening that has never happened before. It's an evolutionary leap in money itself.'

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms


    Aug 21, 2017 (Close)


    • Track your investment in INFOSYS LTD with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks


    Compare Company With Charts