Infosys
IT bellwether Infosys reported better-than-expected 3.8% QoQ revenue growth in dollar terms to US $ 2,066 million or Rs. 12,965 crore for Q2FY14, on a consolidated basis. North America and Europe contributed to 3.9% and 5.2% sequential growth respectively, while among the industry verticals, manufacturing and energy, utilities and communication helped topline rise. Net profit, at Rs. 2,407 crore, however, is higher only 1.4% QoQ in rupee terms, resulting in EPS of Rs. 42.12 for Q2 and Rs. 83.66 for H1 versus Rs. 164.87 in FY13. An interim dividend of Rs.20 per share has been declared, as cash per share on books increases to Rs. 271.
With number of active clients increasing to 873 (from 798 as of 31st March 2013), new client additions for the quarter stood at healthy 68. However, attrition rose to 17.3% in Q2 vis-à-vis 16.9% and 16.3% in Q1 and FY13 respectively, as can be concluded from the handful high level exists in the recent months. The biggest positive was revenue guidance for FY14 in dollar terms being revised upwards to 9-10% from 6-10% earlier. This also implies that rupee revenue guidance now scales up to 21-23% from earlier 13-17%.
Market cap of Infy at Rs. 3.1 lakh crore has surpassed that of RIL’s Rs. 2.8 lakh crore, and inching closer to TCS’s Rs. 4.1 lakh crore. PE multiple of Infy now stands at about 18x, against TCS’s 26x.