Infosys beat market expectations by recording a remarkable growth of 134% in profits during 2QFY01. Analysts were expecting a profit growth in the range of 100-125%.
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
Diluted number of shares
Diluted Earnings per share*
During the 2QFY01 revenues from e-commerce increased to 31.7 % of total sales from 28.7% in the previous quarter. The company's product business accounts for marginal 2.7% of total business. Increasing revenues for e-business has helped the company improve its operating margins to 39.5% (38.7% in 1QFY01). Also revenues from North America contributed 75% to total sales followed by 18% from Europe.
Revenue by technology
* It includes revenues from CAD/CAM/CAE and embedded systems
The company continues to expand its client base and has added 27 new clients during this quarter. The top 5 customers of the company contributes 24.9% of its total revenues and there are only 2 clients accounting for more than 5% of revenues. Thus Infosys has de-risked its revenue model through well diversified technology mix and limiting client concentration.
At the current market price of Rs 7,316 Infosys is trading at a P/E of 86 times its first half annualised earnings. The company has always enjoyed premium valuations in the market led by its ability to maintain a high growth rate and its high management credibility. The results declared by Infosys may set the trend for valuations in the beaten-down software sector and could trigger buying sentiment.
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