Infosys Ltd. - Q1FY13 Result Flash - Ventura

Key Takeaways

- Infosys reported decline in PAT by 1% Q-o-Q (Rs.2,289 cr.) in Q1FY13 v/s market expectation of 5.7% Q-o-Q.

- Revenue has increased to 28% in Q1FY13 v/s market expectation of 9.2% Y-o-Y.

- EBIT margins have improved to 28% from 26% Q-o-Q.

- Revenue for the retail & manufacturing segment grew on Q-o-Q basis. Revenue for the BFSI segment remained flat while that of the energy segment witnessed a decline.

- The Company added 51 new clients during the quarter.

- Total net addition to the employee base stood at 1,157. Attrition rate was 14.9%.

- At the end of Q1 FY13, Cash and cash equivalents, including investments was Rs.20,596 crore (Rs.16,969 crore as on June 30, 2011).

- The company has guided for Revenue & EPS of Rs.40,364 cr and 166.5 respectively, for FY13.

Outlook: Uncertain outlook for the global IT space has cast shadows on the profitability of the Indian IT space. With major companies like General Motors going for in-sourcing and US government supporting them through tax breaks can affect the growth & profitability of the Indian IT space. Further, Infosys with continued disappointing numbers is likely to remain in seller's radar. We recommend, a SELL on the stock.

Source : Equity Bulls

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