Infy continuing with its tradition has once again beaten its own guidance. However, the results are in line with market expectations. For 3QFY02, the company has clocked a 1.6% sequential (QoQ) growth in revenues and a rise of 2.2% in the bottomline. On a YoY basis, the company’s topline has grown by 23% and the net profits have recorded a 23.8% growth.
However, the company has indicated of a very tough fourth quarter. It expects revenues to decline sequentially (QoQ) by 3.8% for the quarter ending March 2002 from its existing business.
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Provision and contingencies
Profit after Tax/(Loss)
Net profit margin (%)
Diluted number of shares
Diluted Earnings per share*
The strong positive that has come out of the results is that Infy’s operating margins have jumped by 70 basis points. This has been possible due to the company managing to control its costs, as the growth in volumes, has been offset by decline in realisations. While the company has seen a 3.4% growth in volumes, blended billing rates have declined by 3.2%.
At the current market price of Rs 4,436 the stock is trading at a P/E multiple of 36x its 3QFY02 annualised earnings. The stock is witnessing downside as the markets were expecting an affirmation of their expectations of a recovery in the technology sector from this result. But all the numbers indicate is that the uncertainty still continues.
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: email@example.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407