Infosys Q1FY17 consolidated net profit declines 4% qoq to Rs.3436 crore : Estimates Mixed

India Infoline News Service | Mumbai | July 15, 2016 10:26 IST

Company’s revenue stood at Rs. 16782 crore rising 1.40% qoq and 16.92% yoy

Infosys
Infosys, country’s second largest IT services exporter, reported consolidated net profit of Rs. 3436 crore for the quarter ended 30th June,2016 registering a decline of 4.47% qoq, but growth of 13.40% yoy. Company’s revenue stood at Rs. 16782 crore rising 1.40% qoq and 16.92% yoy.

It’s consolidated operating profit of Rs.4447 crore for the quarter declining 4.14% QoQ, but rising 18.27% YoY. Operating profit margin for the current quarter at 26.50% declining 153 bps qoq but expanding 31 bps yoy.

Infosys Q1: Revenue growth disappoints; FY17 dollar revenue guidance cut!

Infosys reported a lower-than-expected cc dollar revenue growth of 1.7% qoq v/s IIFL expectation of 3.5% qoq. The revenue miss in Q1 FY17 has led to the management cutting the full year growth guidance to 10.5-12% yoy from 11.5-13.5% yoy. A likely near-term uncertainty caused by Brexit is also likely to have weighed on the growth outlook for the year. This would call for material cut in street’s revenue growth estimates for FY17/18 which currently stands at 14-15%. In Q1 FY17, volume growth was modest at 2.2% and CC pricing declined by 0.7% mainly reflecting persistent pressure on pricing in traditional service lines. OPM decline was lower than expected at 150bps qoq, cushioned to an extent by better utilization and SG&A leverage. Margin stands at multi-quarter low and the company would need squeeze efficiencies from operational levers to recoup margins through the year.   


Result Highlights: (Rs. in crore)

 
Reported Results IIFL Estimates Variance (%)
Consolidated Revenue 16782 17018  -1.38
Consolidated Net Profit 3436 3380.5 1.64

Consolidated EPS for the quarter ended June 30, 2016 stood at Rs. 15.03.

Stock Commentary:

Infosys Ltd is currently trading at Rs. 1085.05, down by Rs. 90.8 or 7.72% from its previous closing of Rs. 1175.85 on the BSE.

The scrip opened at Rs. 1186.35 and has touched a high and low of Rs. 1195 and Rs. 1060 respectively. So far 6693415(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 270086.24 crore.

The BSE group 'A' stock of face value Rs. 5 has touched a 52 week high of Rs. 1278 on 03-Jun-2016 and a 52 week low of Rs. 969 on 15-Jul-2015. Last one week high and low of the scrip stood at Rs. 1195.05 and Rs. 1153.2 respectively.

The promoters holding in the company stood at 12.75 % while Institutions and Non-Institutions held 57.71 % and 29.05 % respectively.

The stock is currently trading below its 50 DMA.

***Note: This is a NSE Chart

 

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