Infosys

The Sensex is down over 230 points yet Infosys is right up in the green, the top gainer, up by Rs.237/share or 6.5% higher over yesterday’s close.

The stock has zoomed up after it beat most of the bearish estimates. The company posted a 4.5% (QoQ) and 3% jump in consolidated revenues at Rs.13,342 crore with net profit coming in at Rs.3096 crore, up over 7% sequentially and jump of 29% YoY. EPS for the quarter was at Rs.54.19. In dollar terms, net profit increased 6% sequentially, and revenue grew 3.1%. Analysts were also enthused by the 100 bps QoQ rise in operating margin for current Q2FY15 at 26.1%.

But the real cheer was the 1:1 bonus, which came as a real bolt from the dark. Because the market was never expecting one, this generosity is what added a lot of cheer. The company also declared an interim dividend of Rs.30/share.

On the guidance front, the company has maintained the revenue estimate for FY15 at 7-9% growth in rupee terms.

During the quarter, Infosys and its subsidiaries added 49 clients (gross) during the quarter. It saw a gross addition of 14,255 employees during the quarter and its total employee count at end of Q2 stands at 1,65,411. In terms of geographical distribution of revenue, North America continued to lead at 60.8%, followed by Europe at 24.7%, India at 2.2% and RoW at 12.3%. Sequentially, all these regions have remained almost status quo.

In terms of revenue by industry, BFSI at 32.8% fell marginally from 33.4% (QoQ), manufacturing was at 23.3% (23.2%), Retail & Life Sciences was down a bit at 23.4% (23.8%) while energy, utilities, Communication and services rose from 5.1% to 5.5%. Utilization (excluding trainees) was up from 80.1% to 82.3%.

Liquid assets including cash and cash equivalents, available-for-sale financial assets, certificates of deposits and government bonds were Rs.33,616 crore as on September 30, 2014 as compared to Rs.29,748 crore as on June 30, 2014.

The company has pledged Rs.254 crore for F 15 towards Corporate Social Responsibility (CSR) through the Infosys Foundation - its philanthropic arm.