Infosys - 3QFY11 results in-line, Volumes disappoint - Motilal Oswal

Infosys Technologies Limited (NASDAQ:INFY) announced its third quarter financial results today. The 3QFY11 US$ revenues grew 6% QoQ at US$1585m against Motilal Oswal's expectations of 6.3% QoQ growth and guidance of US$1,547-1,562m (3.4-4.4%)

There was volume growth of 3.14% (v/s est. of 6.0% QoQ). The Rupee revenues were at Rs71.1b grew by 2.3% QoQ (v/s est. of Rs71.4b, up 2.7%)

The EBITDA margin was at 33.2%, down 10bp QoQ (v/s est. of 40bp decline to 32.9%). SGA as % of sales at 12.6%, (v/s est. of 12.3% and 2QFY11 SGA at12.6%)

Other income was at Rs2.9b (v/s est. of Rs3.1b). Profit after tax at Rs17.8b, 2.5% QoQ (v/s est. of Rs18.3b, up 5.4% QoQ). EPS Rs31.1 (v/s est. of Rs32.1)

The Attrition (LTM) at 17.5% (v/s 17.1% in 2QFY11). Infosys FY11 US$ revenue growth guidance at 25.7% to 26.1% YoY (v/s expectation. of 25-26% YoY).

FY11 EPS guidance at Rs118.7-118.9. The weaker economic recovery in developed markets coupled with high unemployment and risk of sovereign default could impact industry growth.Uncertainties related to sustainability of the global economic recovery could create greater currency volatility in the near future. Our focus will continue to be on high-quality growth, balancing both the revenue growth and margins.

Source : Equity Bulls

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