 "Infosys hits record high on FY17 revenue guidance")
Infosys has rallied 8% to Rs 1,268, also its record high on the BSE in early morning trade after India’s second-largest information technology (IT) services firm forecast strong revenue growth of 11.5%-13.5% in consent currency (CC) in the current fiscal.
In dollar terms, the company expects revenue to grow between 11.8% and 13.8% for the fiscal year ending March 31, 2017, Infosys said in a statement.
Infosys reported a better than expected 3.8% quarter-on-quarter (QoQ) growth in its consolidated net profit at Rs 3,597 crore for the fourth quarter ended March 31, 2016 (Q4). Revenues grew 4.1% at Rs 16,550 crore on QoQ basis.
Analysts on an average had expected profit of Rs 3,542 crore on revenues of Rs 16,586 crore for the quarter.
“Infosys guidance reassures street that the company is back to industry leading growth trajectory (FY16 CC revenue growth of 13.3% and volume growth of 14.5% YoY). 4QFY16 constant currency revenues grew 1.9% QoQ and volumes grew 2.4% QoQ,” Prabhudas Lilladher said in a note.
The brokerage house reiterate Infosys as top pick with target price of Rs 1,530, given a solid operating performance in FY16 and strong FY17 outlook it expect the stock to trade at premium to sector peers.
This guidance is clearly a positive surprise for the street, particularly given they missed on Q4 and thus were working on lower run-rate going into FY17. Also, the US$ guidance implies an impressive CQGR of 3.3-4% for the next four quarters, according to Religare Institutional Research.
The brokerage house maintains ‘buy’ rating on the stock with target price of Rs 1,330 citing a strong guidance and industry-leading growth should continue to support Infosys’s premium valuations.
At 09:18 am, the stock was up 7% at Rs 1,258 on the BSE as compared to 0.52% gain in the S&P BSE Sensex. A combined 1.63 million shares changed hands on the counter on the BSE and NSE.
In dollar terms, the company expects revenue to grow between 11.8% and 13.8% for the fiscal year ending March 31, 2017, Infosys said in a statement.
Infosys reported a better than expected 3.8% quarter-on-quarter (QoQ) growth in its consolidated net profit at Rs 3,597 crore for the fourth quarter ended March 31, 2016 (Q4). Revenues grew 4.1% at Rs 16,550 crore on QoQ basis.
Analysts on an average had expected profit of Rs 3,542 crore on revenues of Rs 16,586 crore for the quarter.
“Infosys guidance reassures street that the company is back to industry leading growth trajectory (FY16 CC revenue growth of 13.3% and volume growth of 14.5% YoY). 4QFY16 constant currency revenues grew 1.9% QoQ and volumes grew 2.4% QoQ,” Prabhudas Lilladher said in a note.
The brokerage house reiterate Infosys as top pick with target price of Rs 1,530, given a solid operating performance in FY16 and strong FY17 outlook it expect the stock to trade at premium to sector peers.
This guidance is clearly a positive surprise for the street, particularly given they missed on Q4 and thus were working on lower run-rate going into FY17. Also, the US$ guidance implies an impressive CQGR of 3.3-4% for the next four quarters, according to Religare Institutional Research.
The brokerage house maintains ‘buy’ rating on the stock with target price of Rs 1,330 citing a strong guidance and industry-leading growth should continue to support Infosys’s premium valuations.
At 09:18 am, the stock was up 7% at Rs 1,258 on the BSE as compared to 0.52% gain in the S&P BSE Sensex. A combined 1.63 million shares changed hands on the counter on the BSE and NSE.