Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Infosys Limited (INFY) declared its consolidated results, on 12 October 2011, under Indian GAAP and IFRS, for the quarter ending 30 September 2011. INFY’s performance, both in ` and $ terms, came in line with the Bloomberg consensus estimates in Q2 FY2012. However, the company’s performance remained slightly below our expectations during the quarter. A summary of INFY’s Q2 FY2012 results is as follows: Total Income for the Quarter:
In `- 8,099 Crores (up 16.6% y-o-y, 8.2% q-o-q)
In $- 1,746 Mn (up 16.7% y-o-y, 4.5% q-o-q)
Diluted EPS for the Quarter:
In `- 33.36 per share (up 9.7% y-o-y, 10.7% q-o-q)
In $- 0.72 per share (up 10.8% y-o-y, 7.5% q-o-q)
Result Highlights
Improved pricing, growth in volumes lifted top line
Decline in attrition, higher utilization, and depreciating home currency supported margins expansion
Challenging scenario, but no worries as of now
Significantly upped the yearly revenue guidance in ` terms, provided healthy estimates for Q3 FY2012E
Financial Analysis
Improved pricing, growth in volumes lifted top line. INFY reported a 0.5% improvement in pricing and a 4.5% sequential growth in volumes, during Q2 FY2012. Increase in volumes was primarily backed by the clients’ urge to seek new growth opportunities, innovation and expand Return on Investments. In words of the company’s newly designated CEO and MD, SD Shibulal, “The global macroeconomic environment is still uncertain. It is and should be a concern for the IT industry. In this scenario, clients are looking for new opportunities for growth, accelerated innovation and increased returns on investments. Our strategic initiatives and organization structure will enable us to build long term partnerships with our clients and help them drive their business objectives.”
Businesses remaining wealthy and steady in the US, coupled with a sharp depreciation of ` against $, helped INFY report 10.1% sequential growth from North American region. For the first time after Q3 FY2009, the company reported a double digit sequential top line increase from its most prominent geography. The region contributed for ~65.3% of INFY’s top line in Q2 FY2012.
Infosys Limited (INFY) declared its consolidated results, on 12 October 2011, under Indian GAAP and IFRS, for the quarter ending 30 September 2011. INFY’s performance, both in ` and $ terms, came in line with the Bloomberg consensus estimates in Q2 FY2012. However, the company’s performance remained slightly below our expectations during the quarter. A summary of INFY’s Q2 FY2012 results is as follows: Total Income for the Quarter:
In `- 8,099 Crores (up 16.6% y-o-y, 8.2% q-o-q)
In $- 1,746 Mn (up 16.7% y-o-y, 4.5% q-o-q)
Diluted EPS for the Quarter:
In `- 33.36 per share (up 9.7% y-o-y, 10.7% q-o-q)
In $- 0.72 per share (up 10.8% y-o-y, 7.5% q-o-q)
Result Highlights
Improved pricing, growth in volumes lifted top line
Decline in attrition, higher utilization, and depreciating home currency supported margins expansion
Challenging scenario, but no worries as of now
Significantly upped the yearly revenue guidance in ` terms, provided healthy estimates for Q3 FY2012E
Financial Analysis
Improved pricing, growth in volumes lifted top line. INFY reported a 0.5% improvement in pricing and a 4.5% sequential growth in volumes, during Q2 FY2012. Increase in volumes was primarily backed by the clients’ urge to seek new growth opportunities, innovation and expand Return on Investments. In words of the company’s newly designated CEO and MD, SD Shibulal, “The global macroeconomic environment is still uncertain. It is and should be a concern for the IT industry. In this scenario, clients are looking for new opportunities for growth, accelerated innovation and increased returns on investments. Our strategic initiatives and organization structure will enable us to build long term partnerships with our clients and help them drive their business objectives.”
Businesses remaining wealthy and steady in the US, coupled with a sharp depreciation of ` against $, helped INFY report 10.1% sequential growth from North American region. For the first time after Q3 FY2009, the company reported a double digit sequential top line increase from its most prominent geography. The region contributed for ~65.3% of INFY’s top line in Q2 FY2012.
On operational front, INFY added 45 new clients during the quarter compared with addition of 26 clients in the previous quarter. The company intends to continue exploring inorganic growth opportunities across the business verticals. With 48 additional patent applications during the quarter, INFY had 424 pending patent applications in India and the US. The company has been granted 30 patents by the United States Patent and Trademark Office.
Decline in attrition, higher utilization, and currency supported margins expansion. INFY reported 201 basis points (bps) and 209 bps, sequential expansion in Earnings before Interest, Tax, Depreciation, and Amortization (EBITDA) and Earnings before Interest and Tax (EBIT) margins respectively, in Q2 FY2012. The expansion in margins reflects combined impact of 60 bps q-o-q improvement in utilization levels, 20 bps sequential reduction in Attrition and depreciation of ` vis-à-vis $. While the company’s utilization improved to 70.2%, Attrition remained at 15.6%. Furthermore, INFY reported average `/$ rate at `46.30/$ during the quarter compared with `44.78/$ a quarter earlier. However, an elevated tax rate limited INFY to attain full benefits of these positives. Effective tax rate for the company stood at 28.6% in Q2 FY2012 compared with 28.1% in Q1 FY2012. Consequently, INFY’s Net Profit margins improved just 53 bps to 23.53% during the quarter. Scenario remains challenging, however, no worries as of now. According to INFY’s CFO and Board Member V Balakrishnan, “The global currency market continues to remain highly volatile on the back of weak economic recovery in most of the developed markets. Our continued focus on adding measurable value to clients, coupled with our flexible financial model will enable us to make the right investments without compromising on high-quality growth.” The company’s management indicated that the scenario will become clear by January 2012. Furthermore, the management portrayed that they are cautious about the scenario but are well prepared for the challenges. INFY also assured that the growth will remain balanced across the remaining quarters of FY2012E. INFY’s board declared an interim dividend of `15 per share as well. Significantly upped the yearly revenue guidance, provided healthy estimates for Q2 FY2012. INFY revised its yearly ` guidance for both, top line and EPS, incorporating changes during the current quarter and macro-economic factors especially currency. With this, INFY increased the predicted top line range for FY2012E to `33,501-34,088 Crores from earlier guided levels of `31,777-32,311 Crores. INFY also raised the EPS guidance range for the upcoming financial year to `143.02-145.26 from `128.20-130.08, guided during Q1 FY2012. Furthermore, INFY now expects its revenues to aggregate between $7.08 Bn and $7.20 Bn; it expects the EPS to range between $3.02 and $3.06 per share in FY2012E. In Q1 FY2012, the company predicted its top line in the range of $7.13-7.25 Bn whereas it expected the EPS to remain between $2.88 and $2.92 per share. On a quarterly basis, INFY expects the top line to stand between `8,826 Crores and `9,012 Crores in Q3 FY2012E, reflecting a y-o-y increase of 24.2-26.8%. In addition, the company foresees a y-o-y increase of 23.6-25.8% in EPS to `38.51-39.20 per share during the quarter. In $ terms, INFY anticipates the top line to grow 13.7-16.1% y-o-y in Q3 FY2012E to $1,802-1,840 Mn. Additionally, it estimates the EPS to grow 14.5-15.9% y-o-y to $0.79-0.80 in the upcoming quarter. Following table reflects the company’s Q2 FY2012 performance vis-à-vis Q1 FY2012 and Q2 FY2011 performances.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Infosys Limited (INFY) declared its consolidated results, on 12 October 2011, under Indian GAAP and IFRS, for the quarter ending 30 September 2011. INFY’s performance, both in ` and $ terms, came in line with the Bloomberg consensus estimates in Q2 FY2012. However, the company’s performance remained slightly below our expectations during the quarter. A summary of INFY’s Q2 FY2012 results is as follows: Total Income for the Quarter:
In `- 8,099 Crores (up 16.6% y-o-y, 8.2% q-o-q)
In $- 1,746 Mn (up 16.7% y-o-y, 4.5% q-o-q)
Diluted EPS for the Quarter:
In `- 33.36 per share (up 9.7% y-o-y, 10.7% q-o-q)
In $- 0.72 per share (up 10.8% y-o-y, 7.5% q-o-q)
Result Highlights
Improved pricing, growth in volumes lifted top line
Decline in attrition, higher utilization, and depreciating home currency supported margins expansion
Challenging scenario, but no worries as of now
Significantly upped the yearly revenue guidance in ` terms, provided healthy estimates for Q3 FY2012E
Financial Analysis
Improved pricing, growth in volumes lifted top line. INFY reported a 0.5% improvement in pricing and a 4.5% sequential growth in volumes, during Q2 FY2012. Increase in volumes was primarily backed by the clients’ urge to seek new growth opportunities, innovation and expand Return on Investments. In words of the company’s newly designated CEO and MD, SD Shibulal, “The global macroeconomic environment is still uncertain. It is and should be a concern for the IT industry. In this scenario, clients are looking for new opportunities for growth, accelerated innovation and increased returns on investments. Our strategic initiatives and organization structure will enable us to build long term partnerships with our clients and help them drive their business objectives.”
Businesses remaining wealthy and steady in the US, coupled with a sharp depreciation of ` against $, helped INFY report 10.1% sequential growth from North American region. For the first time after Q3 FY2009, the company reported a double digit sequential top line increase from its most prominent geography. The region contributed for ~65.3% of INFY’s top line in Q2 FY2012.
Infosys Limited (INFY) declared its consolidated results, on 12 October 2011, under Indian GAAP and IFRS, for the quarter ending 30 September 2011. INFY’s performance, both in ` and $ terms, came in line with the Bloomberg consensus estimates in Q2 FY2012. However, the company’s performance remained slightly below our expectations during the quarter. A summary of INFY’s Q2 FY2012 results is as follows: Total Income for the Quarter:
In `- 8,099 Crores (up 16.6% y-o-y, 8.2% q-o-q)
In $- 1,746 Mn (up 16.7% y-o-y, 4.5% q-o-q)
Diluted EPS for the Quarter:
In `- 33.36 per share (up 9.7% y-o-y, 10.7% q-o-q)
In $- 0.72 per share (up 10.8% y-o-y, 7.5% q-o-q)
Result Highlights
Improved pricing, growth in volumes lifted top line
Decline in attrition, higher utilization, and depreciating home currency supported margins expansion
Challenging scenario, but no worries as of now
Significantly upped the yearly revenue guidance in ` terms, provided healthy estimates for Q3 FY2012E
Financial Analysis
Improved pricing, growth in volumes lifted top line. INFY reported a 0.5% improvement in pricing and a 4.5% sequential growth in volumes, during Q2 FY2012. Increase in volumes was primarily backed by the clients’ urge to seek new growth opportunities, innovation and expand Return on Investments. In words of the company’s newly designated CEO and MD, SD Shibulal, “The global macroeconomic environment is still uncertain. It is and should be a concern for the IT industry. In this scenario, clients are looking for new opportunities for growth, accelerated innovation and increased returns on investments. Our strategic initiatives and organization structure will enable us to build long term partnerships with our clients and help them drive their business objectives.”
Businesses remaining wealthy and steady in the US, coupled with a sharp depreciation of ` against $, helped INFY report 10.1% sequential growth from North American region. For the first time after Q3 FY2009, the company reported a double digit sequential top line increase from its most prominent geography. The region contributed for ~65.3% of INFY’s top line in Q2 FY2012.
On operational front, INFY added 45 new clients during the quarter compared with addition of 26 clients in the previous quarter. The company intends to continue exploring inorganic growth opportunities across the business verticals. With 48 additional patent applications during the quarter, INFY had 424 pending patent applications in India and the US. The company has been granted 30 patents by the United States Patent and Trademark Office.
Decline in attrition, higher utilization, and currency supported margins expansion. INFY reported 201 basis points (bps) and 209 bps, sequential expansion in Earnings before Interest, Tax, Depreciation, and Amortization (EBITDA) and Earnings before Interest and Tax (EBIT) margins respectively, in Q2 FY2012. The expansion in margins reflects combined impact of 60 bps q-o-q improvement in utilization levels, 20 bps sequential reduction in Attrition and depreciation of ` vis-à-vis $. While the company’s utilization improved to 70.2%, Attrition remained at 15.6%. Furthermore, INFY reported average `/$ rate at `46.30/$ during the quarter compared with `44.78/$ a quarter earlier. However, an elevated tax rate limited INFY to attain full benefits of these positives. Effective tax rate for the company stood at 28.6% in Q2 FY2012 compared with 28.1% in Q1 FY2012. Consequently, INFY’s Net Profit margins improved just 53 bps to 23.53% during the quarter. Scenario remains challenging, however, no worries as of now. According to INFY’s CFO and Board Member V Balakrishnan, “The global currency market continues to remain highly volatile on the back of weak economic recovery in most of the developed markets. Our continued focus on adding measurable value to clients, coupled with our flexible financial model will enable us to make the right investments without compromising on high-quality growth.” The company’s management indicated that the scenario will become clear by January 2012. Furthermore, the management portrayed that they are cautious about the scenario but are well prepared for the challenges. INFY also assured that the growth will remain balanced across the remaining quarters of FY2012E. INFY’s board declared an interim dividend of `15 per share as well. Significantly upped the yearly revenue guidance, provided healthy estimates for Q2 FY2012. INFY revised its yearly ` guidance for both, top line and EPS, incorporating changes during the current quarter and macro-economic factors especially currency. With this, INFY increased the predicted top line range for FY2012E to `33,501-34,088 Crores from earlier guided levels of `31,777-32,311 Crores. INFY also raised the EPS guidance range for the upcoming financial year to `143.02-145.26 from `128.20-130.08, guided during Q1 FY2012. Furthermore, INFY now expects its revenues to aggregate between $7.08 Bn and $7.20 Bn; it expects the EPS to range between $3.02 and $3.06 per share in FY2012E. In Q1 FY2012, the company predicted its top line in the range of $7.13-7.25 Bn whereas it expected the EPS to remain between $2.88 and $2.92 per share. On a quarterly basis, INFY expects the top line to stand between `8,826 Crores and `9,012 Crores in Q3 FY2012E, reflecting a y-o-y increase of 24.2-26.8%. In addition, the company foresees a y-o-y increase of 23.6-25.8% in EPS to `38.51-39.20 per share during the quarter. In $ terms, INFY anticipates the top line to grow 13.7-16.1% y-o-y in Q3 FY2012E to $1,802-1,840 Mn. Additionally, it estimates the EPS to grow 14.5-15.9% y-o-y to $0.79-0.80 in the upcoming quarter. Following table reflects the company’s Q2 FY2012 performance vis-à-vis Q1 FY2012 and Q2 FY2011 performances.
No comments:
Post a Comment