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Infosys Posts Best Sales Growth in 15 Quarters, Shares Jump 15%

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Infosys Posts Best Sales Growth in 15 Quarters, Shares Jump 15%
Infosys on Tuesday posted its best dollar revenue growth in 15 quarters, leading to a 15 per cent jump in its shares. India's second biggest outsourcer said dollar revenues grew 4.5 per cent over the previous quarter, while volumes (a key barometer for demand) jumped 5.4 per cent sequentially, the highest in 19 quarters.

In constant currency terms, Infosys posted sequential revenue growth of 4.4 per cent, beating its bigger competitor TCS, which earlier this month reported a 3.5 per cent constant currency revenue growth.

Notably, Infosys retained its annual sales guidance at 10-12 per cent in constant currency. In dollar terms, Infosys increased its guidance to 7.2-9.2 per cent in an indication that the company is more confident about its growth prospects as compared to the previous quarters.

In rupee terms, Infosys reported a net profit of Rs 3,030 crore on sales of Rs 14,354 crore. Analysts polled by NDTV expected the company to report a net profit of Rs 3,019 crore on sales of Rs 14,066 crore.

Infosys added 79 new clients in the quarter taking the total tally to 987 at the end of June.

"The organization realignment made earlier this year for deeper client and operational focus has resulted in strong volume growth," Infosys Chief Operating Officer U. B. Pravin Rao said in the statement.

Infosys' strong operational performance comes after several quarters of underwhelming results, which saw Infosys lose its bellwether status to TCS. Under its first non-founding CEO Vishal Sikka, Infosys is making a comeback, analysts said.

"The topline growth seems to be good and has percolated to better profit growth as well... Results will bring cheer for the markets," Dhananjay Sinha of Emkay Global told NDTV.

Gaurang Shah of Geojit BNP Paribas said Infosys has posted stellar numbers, which should lift market sentiments.

Infosys was the top gainer in the 50-share Nifty index. The outperformance in Infosys also lifted the broader markets because Infosys has the third largest weightage in the Nifty after HDFC and HDFC Bank.

As of 09.59 a.m., Infosys shares traded 11 per cent higher at Rs 1,111.

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