Infosys draws a pleasant surprise

Infosys is up in the green today morning with its Q3FY16 performance taking all by surprise. The stock is up currently over 4.5% at Rs.11322.75 and this is closer to its intra day high of Rs.1139.80.

The company’s Q3FY16 numbers not only beat estimates but also upped full year guidance and this was great news for a market starved for any positive trigger. Its consolidated net profit for the quarter rose 2% (QoQ) at Rs.3465 crore on a 2% rise in revenue at Rs.15,902 crore. Its dollar revenue rose just a tad above 0.5% at $2407 million.

In terms of its guidance, it revised its dollar revenue growth up from 6.4 - 8.4% to 8.9 – 9.3%. It also upped its constant currency revenue guidance to 12.8 – 13.2% from 10 – 12% earlier.

Its realization dropped 2.5% and this had an impact on the margin – EBIT fell 0.85% to Rs.3959 crore and margin fell to 24.9%, down by 60 bps (QoQ).

Active clients at the end of December quarter stood at 1,045 v/s 1011 (QoQ). Utilisation rate, including trainees was at 74.2% v/s 75.4%.