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.
Infy posts 109% rise in Net, Sales - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Jul 11, 2000

    Infy posts 109% rise in Net, Sales

    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) 1QFY00 1QFY01 Change
    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 Tax 686 1,350 96.8%
    Other Adjustments 0 55  
    Tax 80 137 71.4%
    Profit after Tax/(Loss) 606 1,268 109.2%
    Net profit margin (%) 35.6% 35.7%  
    Diluted EPS 36.7 76.8  

    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: 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.

    The Most Important Innovation in Finance Since Gold Coins(Vivek Kaul's Diary)

    Aug 10, 2017

    Bill connects the dots...between money and growth, real money and real resources, gold and cryptocurrencies...and between gold, cryptocurrencies, and time.

    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?

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

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

    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 23, 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