Infosys - First Cut Q1FY14 - Microsec

Infosys Ltd (INFY) announced its consolidated Q4 FY2014 and 12 July 2013. Both the company's top line and bottom line beat our estimates. INFY's top line grew to Rs. 11267 crores which is higher by 7.8% and 17.2% on QoQ basis & YoY basis respectively while its bottom line came above our expectations at Rs. 2374crores which is up by 3.7% on YoY basis. On the dollar($) front the company reported a revenue of $1991mn which is up by 2.7% on quarterly basis. During the quarter the company added 66 clients. Infosys added net of 575 employees during the quarter and this time the attrition rate is at 16.9%.

The company maintained their revenue guidance of 6%-10% for FY14 in $ terms. while in Rs. terms they have given an estimated of 13%. The management opined that they are cautiously optimistic for the rest of the year and also opined that in the Q2FY14 their margins will be affected due to the rise in compensation package in the month of July.

However the street is not perceiving this performance as a breakthrough performance for the stock but it will definitely improve the sentiment towards the stock.

Source : Equity Bulls

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