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 beats expectations in 2QFY02 - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Oct 10, 2001

    Infy beats expectations in 2QFY02

    Infosys has beaten all market expectations with a superb performance for 2QFY02. The company has posted a sequential growth (QoQ) of 6.1% in revenues and the sequential increase in net profit is 6.1%. On a YoY basis the company’s revenues have grown by 45.7% and the rise in bottomline is 30.9%. The highlight of the performance is that the company’s operating margins have improved by 50 basis points.

    The blended billing rates have gone up by 2.6% during the quarter. The increase in the onsite billing rates has been 3.4% and the offshore billing rates in risen by 1.7%. The company has managed to add 28 new clients during 2QFY02, compared to 26 based in 1QFY01. A point worth of note is that Infosys added 11 of the news clients after the September 11th tragedy in the US. The list of clients added during the quarter figures names like ING group, Royal Bank of Canada, DCZ DekaBank and Kenya Commercial Bank from the banking, financial services and insurance vertical. From the manufacturing sector, the company has added Lear Corporation and Viseton, which are automotive parts suppliers. JDS Uniphase is an addition from the telecom sector.

    (Rs m) 1QFY02 2QFY02 Change
    Sales 6,125 6,501 6.1%
    Other Income 135 147 8.7%
    Expenditure 3,720 3,912 5.2%
    Operating Profit (EBDIT) 2,405 2,589 7.7%
    Operating Profit Margin (%) 39.3% 39.8% -
    Interest - - -
    Depreciation 355 390 10.0%
    Profit before Tax 2,185 2,346 7.3%
    Tax 285 330 15.8%
    Provision and contingencies - - -
    Profit after Tax/(Loss) 1,900 2,016 6.1%
    Net profit margin (%) 31.0% 31.0% -
    Diluted number of shares 66.1 66.1 -
    Diluted Earnings per share* 114.9 122.0 -
    P/E (x) 21.6 20.3 -

    With these significant client additions, the company has managed to de-risk its client concentration. While the revenues from top 5 clients diluted to 25.3% compared to 27.4% in 1QFY02, contribution to revenues from top ten clients diluted more significantly to 39.7% compared to 43.7% as on 1QFY02.

    The net employee addition during 2QFY02 was 607 as compared to 106 for 1QFY02. With this the utilization rates including trainees dropped marginally to 68.8% compared to 69.5% in 1QFY02. However, on a YoY basis the figure has improved compared to 65.4% for 2QFY01. The total number of employees has crossed the 10,000 mark to stand at 10,554 as on September 30, 2001.

    Infosys has given its outlook for the quarter ending December 2001. The company expects the topline to dip marginally on a QoQ basis or remain flat. The topline is expected to be in the range of Rs 6,400 m (2% dip, QoQ) to Rs 6,560 m (1% rise, QoQ). The EPS is expected to be in the range of Rs 29 to Rs 31, this translates to a net profit figure between Rs 1,916 m (4.6% decline, QoQ) and Rs 2,049 m (1.9% rise, QoQ).

    The company has marginally increased its revenue guidance for FY02. The topline is now expected to be in the range of Rs 25.4 bn and Rs 25.9 bn (previous guidance was Rs 25 bn and Rs 25.6 bn). This means that the topline is now expected to grow in the range 33.6% and 36.3%. The EPS is now estimated to be in range of Rs 120 and Rs 123. The previous guidance on the EPS was in the range Rs 118 and Rs 121. This translates to a growth in net profits in the range of 27.3% to 30.4%, with the bottomline expected to be in the range of Rs 7,932 m and Rs 8,130 m.

    At the current market price of Rs 2,503, the stock is trading at a P/E multiple of 20.5 times its 2QFY02 annualised earnings.



    Equitymaster requests your view! Post a comment on "Infy beats expectations in 2QFY02". 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

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    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.

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    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 22, 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