Infosys Ltd, India'ssecond-largest software services exporter, reported a 3.5% rise in profit on a quarterly basis. It met expectations due to higher demand for its outsourcing services by Western clients looking to cut costs.
Here is what trade analysts have to say about it:
Kishor P Ostwal, Chairman, CNI Research, Mumbai
"The numbers are in line but not the guidance. I think Infosys stock will correct by at least 5 percent."
"On the sector guidance... I think most of the analysts are now becoming negative on the IT sector."
G. Chokkalingam, Executive Director & Chief Investment Officer, Centrum Wealth Management, Mumbai
"I have been selling the stock and it's the best time to come out of the stock because the revenue growth in dollar terms is stagnating.
"Base effect and expected rupee appreciation would further add to the pressures."
R.K. Gupta, Managing Director, Taurus Asset Management Co., New Delhi
"Having maintaining their revenue guidance is itself a big achievement for Infosys looking at the global scenario.
"I think the hard work is over for Infosys, since the US economy is showing signs of improvement and a lot of changes are happening within Infosys itself."
Kawaljeet Saluja, Executive Director, Kotak Institutional Equities, Mumbai
"This is disappointing."
Barclays Bank
"We note the few positives in the September quarter numbers – volume growth improved to 3.8% q-o-q (vs 2.7% q-o-q in June), pricing was flat (down 3.7% in June) with the volatility in the product business (down 60 bps as percentage of revenues) being the key cause of weak top-line. Margins was another disappointment with a 170 bps q-o-q drop on the back of higher wage costs (due to promotions) and increased usage of subcontractors."
