India's second largest software exporter, Infosys today reported 28.62% growth in consolidated net profit to Rs 30.96 billion for the quarter ended Sept. 30, 2014 as compared to Rs 24.07 billion in the same period last year. On quarter on quarter basis, it posted a rise of 7.28% in the net profit. Market was expecting profit to come at Rs 29.85 billion.
Revenues has increased to Rs 133.42 billion for the quarter ended Sept. 30, 2014 from Rs 129.65 billion for the quarter ended Sept. 30, 2013, representing an increase of 2.91%. On quarter on quarter basis, it posted a rise of 4.48% in the revenues. ''FY15 revenue guidance maintained at 7-9%,'' the company said.
Commenting on the results, Sarabjit Kour Nangra, VP Research, IT, Angel Broking, said, ''The company posted a 3.1% sequential growth in USD revenues to USD 2,201 million V/s USD 2,193 million expected. In rupee terms, revenues came in at Rs. 13,342 cr V/s Rs. 13,279 cr expected, up 4.5% qoq.
On constant currency (CC) terms, the company posted a strong 3.9% qoq growth V/s 1.5% qoq in 1QFY2015. The key geography that grew well was Europe which grew by 6.5% qoq on CC terms, while USA grew by 3.2% qoq on CC terms. Going forward, the company has maintained its future USD revenue growth guidance for FY2015 at 7-9% and EBIT margins to be sustained at these levels in a narrow band. On valuation front, the stock is cheap at current valuations of 15.5xFY2016E earnings, at a 30% discount to its peer like TCS, which we believe can narrow down once the growth pick-ups. Thus , we maintain our buy rating on the stock with a target price of Rs 4,700.''
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