Infosys Shoots 10 per cent after good Q1 Result

Infosys Technologies is a global technology services company that defines, designs and delivers technology-enabled business solutions for Global 2000 companies. Their services include business and technology consulting, application services, systems integration, product engineering, custom software development, maintenance, re-engineering, independent testing and validation services, IT infrastructure services and business process outsourcing.

Recently Infosys announced its First Quarter FY16 result, wherein the revenue stood at Rs 14,354 crore up from Rs  13,411 crore, rising by 7 per cent on quarterly basis. This is mainly due to the strong spending from top clients. It maintained its annual revenue guidance of 10-12 per cent. The cost of sales  rose by 11.6 per cent and on Q-o-Q basis, the gross profit stood at Rs 5,231 crore as compared to to Rs 5,237 crore, down by 0.11 per cent on quarterly basis. In this quarter, the total expenses remained the same, with stable cost of selling and marketing expenses and administrative expenses. The Net profit of Infosys stood at Rs 3030 crore from its previous 3097 crore, slightly down by 2 per cent on Q-o-Q basis. During the quarter, the company signed six large deals worth  USD 68.8 crore with  TCV.

"I am very pleased with our performance in the first quarter. Our efforts in redesigning our clients' experience and our widespread adoption of innovation, both in grassroots and breakthroughs, are starting to bear fruit in large deal wins and in the growth of large clients," said CEO Vishal Sikka in a statement. "While we are still early in our journey to become the leading next-generation services company, this gives us good momentum for the rest of the year."

On yearly basis the consolidated revenue of Infosys increased by 12.4 per cent to Rs 14,354 crore against Rs 12770 crore. The gross profit and operating profit rose by 12.7 per cent and 7.3 per cent respectively year on year basis. The net profit of the company increased by 5 per cent to Rs   3030 crore in Q1FY16 from Rs 2,886 crore in Q1FY15.

Today, after the result announcement the Infosys shares are trading at Rs 1096,  up by 10 per cent.