Infosys shares up 3% as Q3 results beat estimates

IT bellwether Infosys' scrip today rose by 3 per cent after the company's third quarter earnings beat street estimates.
Shares of Infosys gained 2.84 per cent to settle at Rs 3,548.9 on the BSE. During the day, the stock jumped 3.59 per cent to Rs 3,575.20.
At the NSE, the stock closed the day at Rs 3,556, up 3.05 per cent from its previous close.
The scrip was the best performer among the blue-chips on both Sensex and Nifty.
"Infosys' revenue was in-line but operating profit margin was a positive surprise and an early indicator of the fruition of management's efforts towards transforming the company to a 'desirable Infosys'. The results will likely drive marginal upgrades in earnings," said Ashish Chopra, IT Analyst, Motilal Oswal Securities Ltd.

According to Ankita Somani, Research Analyst IT, Angel Broking: "We believe that the impact of current high level exits could be felt in the medium term. However, a company like Infosys is system driven with a healthy management bandwidth and hence the impact will not be long lasting.

"The current set of results as well as guidance given is largely in-line with expectations and factored in the stock, which limits a sharp the upside potential for the script in the immediate future."
The country's second-largest software services firm Infosys today posted a 21.4 per cent rise in net profit and raised its revenue growth outlook for this financial year as improving US and European economies revive demand for outsourcing services.

The company's net profit stood at Rs 2,875 crore in the third quarter ended December 31 as against Rs 2,369 crore a year earlier. Revenue rose 25 per cent to Rs 13,026 crore from Rs 10,424 crore, Infosys said in a statement.
Infosys raised its revenue growth forecast to 24.4-24.9 per cent for the financial year ending March 31, from 21-22 per cent estimated earlier.
Meanwhile, buying was also seen at other IT counters, where TCS ended 1.70 per cent higher, while Wipro was up 2.55 per cent.
The BSE IT index settled 2.16 per cent higher at 9,313.63.
In the broader market, the benchmark Sensex ended at 20,758.49, up 45.12 points.