Result Analysis: Infosys Technologies

by free stock tips on July 27, 2008

in Long Term



Infosys Technologies has recorded an impressive growth in topline during the recently concluded quarter due to rupee depreciation. However, in dollar terms, sequential growth in topline stood at a mere 1.1%.
EBITDA margins dipped 207bp q-o-q on account of the salary hikes carried out in April and higher visa costs. Nonetheless, the rupee depreciation witnessed during the quarter did mitigate margin pressure to an extent.
Infosys recorded a 4.2% q-o-q rise in bottomline during Q1FY09 despite margin contraction and lower other income (down 15.8% q-o-q). This was on account of a tax credit of Rs31 crore.
Excluding this, bottomline grew by just 1.8% q-o-q. The management has upgraded its FY2009 guidance and expects revenues to grow by 27.5-29.5%, while EPS is expected to be in the range of Rs99.34-101.06.
We remain positive on the stock and recommend investors to ACCUMULATE at every fall.

Souce : Live Mint

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