Country’s second largest information technology (IT) services company Infosys today cheered investors by announcing a better-than-expected financial performance for October-December 2014 (Q3FY15). Reacting to the quarterly earnings of the company, its shares rose over 5% in intra-day trade.
Here’s a look at five key parameters where Infosys beat Street:
Guidance Unchanged: At a time when most analysts and experts were expecting a cut in the annual revenue growth guidance by Infosys, the Bengaluru-based company left its guidance of 7-9% revenue growth for FY15 unchanged.
Beats estimates: Despite it being a seasonally weak quarter, Infosys posted a 3.4% sequential growth in revenue for Q3FY15, as against estimates of 1-3% rise. The company’s revenue was at Rs 13,796 crore. Net profits 4.9% to Rs 3,250 crore in Q3FY15.
Volume Growth: Infosys saw a volume growth of 4.2% in Q3FY15, which is the best for the company in three years and its highest in the October-December quarter in six years.
Margin Improvement: Against expectations of a margin contraction in Q3FY15 due to cross-currency headwinds, Infosys’ operating profit margins expanded 60 basis points sequentially in Q3FY15 to 26.7%.
Innovation Fund: With Chief Executive Officer Vishal Sikka’s focus on innovation and new technologies, Infosys today announced an expansion of its innovation fund to $ 500 million as against $ 100 million earlier. This fund will be used to globally invest in young companies that are innovating in areas like artificial intelligence, automation, internet of things, collaboration and design.