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 leads software charge with 84% growth in net - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Jan 11, 2000

    Infosys leads software charge with 84% growth in net

    Infosys has reported excellent results for the third quarter ended December 31, 1999. While the topline shot up by 62.4% over the corresponding period last year, the net level shot up 84%. The profit before interest, depreciation and tax rose by 80% primarily due to increase in other income from Rs 7.20 million to Rs 71.1 million. The software development expenses however went up by 77% to 1177.8 million.

    (Rs m) 3QFY2000 3QFY1999 Change
    Net Sales 2,264.0 1,394.5 62.4%
    Other Income 71.1 7.0 915.7%
    Expenditure 1,350.5 855.2 57.9%
    Interest - -  
    Depreciation 144.8 91.2 58.8%
    Profit before Tax 839.9 455.3 84.5%
    Tax 102.0 77.9 30.9%
    Profit after Tax 737.9 400.9 84.1%
    Net profit margin 32.6% 28.7%  

    The one possible reason for software development expenses increasing more than commensurately could be the fact that the company had plans to increase its software staff from 3500 as of March 1999 to 5000 by March 2000. A software engineer undergoes a three month period of training therefore an increase in staff may not increase the topline commensurately in the following quarter.

    Other income of Rs 71.1 million for the quarter included:

    • Rs 42 million of interest on deployment of funds raised through the issue of American Depository Shares,
    • Rs 7.20 million arising from sale of import licenses and
    • a loss of Rs 6.10 million arising from exchange differences on translation of foreign currency deposits kept abroad.

    If one were to exclude the above, the net profit for the current quarter was Rs 694.8 million an 84% increase over the comparable net profit from ordinary activities of Rs.377.4 million for the quarter ended December 31, 1998.

    The company’s Y2K revenues declined to 5.8% for the quarter ended December 1999 (from 9.4% in the previous quarter ended June 1999) while E-commerce revenues shot up to 15.6% of revenues (from 10.3%). The company added 23 new clients (64 year to date), of which 7 (14 year to date) are from the e–commerce area.



    Equitymaster requests your view! Post a comment on "Infosys leads software charge with 84% growth in net". 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

    This Small Cap Can Drive Chinese Players Out of India (and Make a Fortune in the Process)(The 5 Minute Wrapup)

    Aug 17, 2017

    A small-cap Indian company with high-return potential and blue-chip-like stability is set to supplant the Chinese players in this niche segment.

    Dear PM Modi, India is Already Land of Self-Employed, and It Ain't Working(Vivek Kaul's Diary)

    Aug 21, 2017

    Most Indians who cannot find jobs, look at becoming self-employed.

    It's the Best Time to Buy IT Stocks(Daily Profit Hunter)

    Aug 16, 2017

    The IT Sector could be in an uptrend till February 2019. Are you prepared to ride the trend?

    Think Twice Before You Keep Money In A Savings Bank Account(Outside View)

    Aug 22, 2017

    Post demonetisation, a cut in bank savings deposits rates was in the offing.

    5 Steps To Become Financially Independent(Outside View)

    Aug 16, 2017

    Ensure your financial Independence, and pledge to start the journey towards financial freedom today!

    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 24, 2017 03:36 PM


    • 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


    Detailed Quarterly Results With Charts