Infy posts 109% rise in Net, Sales - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Infy posts 109% rise in Net, Sales

Jul 11, 2000

Infosys Technologies Ltd. has posted a YoY 109% jump in its revenues to Rs 3.6 bn in 1QFY01 led by strong growth rate in both domestic and exports revenues. The profit before extraordinary income skyrocketed to Rs 1.2 bn witnessing a rise of 100%.During the quarter the company's e-business engagements contributed 28.7% of total revenues (18.8% in 1QFY00), start-up companies accounted 10.9% (8% in 1QFY00) and the balance is from software services and products. The company continues to expand its client base and has added 32 new clients during this quarter.

Infosys has been able to improve its operating profit margins by 1% to 38.7%. The rise in the expenditure was led by 131% increase in the staff cost.

The company's performance in the current quarter as compared to the quarter ending March 2000, however raises some questions regarding the sustainability of its operating margins. Indeed there has been a marginal deterioration of 0.2% in operating margins during this period. This is largely due to a faster growth in staff costs. Although a two quarter period is short to draw a trend, it nevertheless brings to light a potential problem area for software companies.

(Rs m)1QFY001QFY01Change
Sales 1,703 3,555 108.8%
Other Income 138 151 9.6%
Expenditure 1,061 2,179 105.3%
Operating Profit (EBDIT) 641 1,377 114.6%
Operating Profit Margin (%)37.7%38.7%
Interest - -
Depreciation 93 177 90.3%
Profit before Tax6861,35096.8%
Other Adjustments055
Tax 80 137 71.4%
Profit after Tax/(Loss) 606 1,268 109.2%
Net profit margin (%)35.6%35.7%
Diluted EPS36.776.8
(annualised)

The other income of the company is mainly from exchange differences on translation of foreign currency deposits kept abroad. During the year Infosys transferred its intellectual property rights in Onscan (a web focussed wireless enabled notification product) to Onscan Inc., US. The product was transferred for a gross consideration of US$ 2 m. The income out of the transfer of Rs 54.9 m is treated at extraordinary item.

Infosys has launched its new product 'Finacle' an integrated core banking solutions. The product is positioned as a core banking e-platform bringing a paradigm shift in the way banking is conducted by leveraging on the Internet technology. It enables banks to offer products and services through ATMs, call centres, telephones and the Internet.

At the current market price of Rs 8,450, Infosys is trading at a PER of 110 times its 1QFY00 annualised earnings. In the past the company has P/E ratio in the range of 120-140. The company will be able to maintain its premium valuations due to its ability to grow both organically and inorganically.

Equitymaster requests your view! Post a comment on "Infy posts 109% rise in Net, Sales". Click here!

  

More Views on News

Infosys had an Exceptional Quarter Buoyed by Huge Deal Wins. Revenue Guidance Boosts Stock (Views On News)

Oct 14, 2021

Infosys raised its forecast for annual revenue growth to 16.5-17.5% from the earlier 14-16%, predicted in July 2021.

Infosys Becomes Fourth Company to Hit US$100 bn Marketcap. What's Fuelling the Rally? (Views On News)

Aug 24, 2021

Infosys shares hit a record high on the BSE today and helped it enter the 'Big Four' club.

Infosys Hits Record High After Reporting Fastest Revenue Growth in a Decade (Views On News)

Jul 15, 2021

Here's a rundown on the latest quarterly results of Infosys.

India's Top 4 IT Companies are Struggling. Here's Why... (Views On News)

Oct 22, 2021

As attrition rates are unbelievably high, top Indian IT companies are going for big-ticket raises, and much more hiring this year.

Info Edge: The Anatomy of an Indian Internet Behemoth (Views On News)

Oct 2, 2021

Info Edge is very popular in the Indian startup ecosystem due to its active participation in funding events.

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

Don't Sell these Stocks if the Market Falls (Profit Hunter)

Nov 17, 2021

These are the 3 types of stocks that you should not sell in a market crash.

How to Find Your Next 10-Bagger in this Market (Profit Hunter)

Nov 19, 2021

The #1 make or break factor in your portfolio you shouldn't ignore.

MobiKwik IPO Opens for Subscription Soon. Key Things to Know Before Subscribing. (Views On News)

Nov 20, 2021

The Rs 19 bn issue is set to hit the market soon.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

INFOSYS SHARE PRICE


Nov 29, 2021 (Close)

TRACK INFOSYS

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

INFOSYS - KINGDEE INTER. COMPARISON

COMPARE INFOSYS WITH

MARKET STATS