Home / Financial News / Five parameters on which Infosys’ Q3 earnings beat expectations

Five parameters on which Infosys’ Q3 earnings beat expectations

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.

Leave a Reply

x

Check Also

Debate on Article 370 marked by posturing, says RSS

The Rashtriya Swayamsevak Sangh (RSS) is recalibrating its discourse on its demand ...

Street cautiously positive on JSPL post coal mine

Jindal Steel and Power (JSPL), which witnessed its lowest point in the ...