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Infosys stock soars as Q1 profit meets market estimates

Shares of IT major Infosys on Friday ended with nearly 11 per cent gains, adding Rs 15,849 crore to its market value, after the company posted a near 4 per cent increase in consolidated net profit for the April-June quarter, meeting market expectations.

BT Online Bureau   Mumbai     Last Updated: July 12, 2013  | 16:47 IST

Shares of IT major Infosys on Friday ended with nearly 11 per cent gains, adding Rs 15,849 crore to its market value, after the company posted a near 4 per cent increase in consolidated net profit for the April-June quarter, meeting market expectations.

After surging nearly 15 per cent to Rs 2,905, its highest level since mid-April, in intra-day trade on the BSE, the stock finally ended the day 10.92 per cent higher at Rs 2,802.75.

At the NSE, the scrip soared by 10.92 per cent to settle at Rs 2,804.45.

Tracking strength in the stock, the market value of Infosys surged Rs 15,849 crore to Rs 1,60,944 crore.

Infosys was also the top gainer on both the key indices Sensex and Nifty.

Rally in the stock also gave strength to the BSE benchmark Sensex which rose by 282.41 points to 19,958.47.

Infosys alone contributed 157.45 points in the Sensex gain.

"Infosys reported healthy set of results for Q1 FY14. The fact that there is nothing really incrementally negative in terms of their numbers is encouraging. With the current set of results, clearly the stock has got rewarded but this performance cannot be perceived as a breakthrough performance unless it is consistent for one more quarter," said Ankita Somani, Research Analyst (IT & Telecom), Angel Broking.

The company's consolidated net profit rose by 3.7 per cent to Rs 2,374 crore for the April-June quarter against Rs 2,289 crore in the year-ago period. Its consolidated revenues rose 17.2 per cent to Rs 11,267 crore from Rs 9,616 crore in the year-ago period.

While India's second largest software services exporter kept its US Dollar revenue guidance unchanged at 6-10 per cent for 2013-14 fiscal, it revised its rupee revenue guidance upwards to 13-17 per cent from 6-10 per cent earlier on account of depreciation in the Indian currency.

"Despite facing an uncertain macro environment, changing regulatory regime and a volatile currency environment, we have done well in Q1 and are cautiously optimistic about rest of the year," Infosys CEO and Managing Director S D Shibulal said.

Infosys maintained its "cautiously optimistic" approach due to cross currency movements and regulatory changes in the US, Canada and Australia.

Meanwhile, following Infosys numbers sentiment also turned bullish at other IT counters, with Tech Mahindra surging 5.19 per cent, Wipro (3.34 per cent), TCS (2.94 per cent), HCL Tech (2.46 per cent) and Hexaware Tech (1.74 per cent).

Led by the gains in these stock, the BSE IT index rose by 6.46 per cent to 6,825.82 and was the top gainer among the 13 sectoral indices.

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