Infosys Beats Q3 Street Estimates, Shares Jump 5% – IT major Infosys on Thursday thwarted Street estimates for the third straight quarter, leading to over 5 per cent jump in its shares.
Infosys – India’s second biggest outsourcer posted higher-than-expected revenue in Q3 and also increased its annual guidance, bringing cheer to investors.
Infosys CEO Vishal Sikka said the company’s constant currency revenue is expected to grow at 12.8-13.2 per cent in the current fiscal year. Infosys had earlier steered for 10-12 per cent growth in 2015-16.
In terms of rupees, Infosys reported a net profit of Rs 3,470 crore on sales of Rs 15,902 crore.
The strong show by Infosys should come as a respite for investors, concerned about the warm growth in the IT sector, analysts say. Earlier this week, TCS – India’s biggest outsourcer had let down the Street for the sixth straight quarter.
Rahul Jain, vice president (research) of Systematix Shares & Stocks said Infosys’ volume growth looks much improved, which is the key driving factor for operating matrix.
He said, “Infosys can regain its historical premium over TCS if it continues with impressive performance in Q4.”