The second-biggest software services company in India – Infosys Ltd made an official statement today, posting its profit for the first fiscal quarter of the year that surpassed the median analysts forecast due to a larger number of orders the company received.
The newly-appointed Chief Operating Officer of Infosys Ltd – Mr. U.B. Pravin Rao said in the companys statement, which was cited by the Wall Street Journal: “We saw positive trends in our large deal wins during the quarter.” As reported by Bloomberg, Pravin Rao also commented: “This momentum will hold us in good stead as we focus on increasing volumes.”
According to the companys statement, the net income of Infosys Ltd increased by 22% and reached 28.9 billion rupees (480 million dollars) during the three months ended June in comparison to the 23.7-billion-rupee net income posted for the same period a year earlier. This result beat the median analysts forecasts that amounted to 26.5 billion rupees.
As reported by Bloomberg, the Chief Financial Officer of the company – Mr. Rajiv Bansal also commented on Infosys performance: “We improved operational performance as a result of our cost optimization initiatives and a focus on increasing productivity and utilization. This partially offset the impact of compensation increases for our employees this quarter.”
Infosys also announced that its revenue rose by 13% and reached 127.70 billion rupees. These figures, however, were lower than expected by analysts, who predicted a revenue of 128.20 billion rupees.
One of the analysts, who work at MSFL Research – Ankita Somani commented on the companys performance over the first three months of the fiscal year for the Financial Times: “They’ve delivered well on the margins front given that they had headwinds of wage hikes, increasing visa costs and the appreciation of the rupee.”
Since June 2013, when N.R. Narayana Murthy returned on the position of Chairman, the company has been focused on returning to growth. Infosys Ltd also set boosting margins as one of its primary goals.
Infosys Ltd was 1.03% up to close at 3,326.65 Indian rupees per share yesterday, marking a one-year change of +31.21%. According to the information published on the Financial Times, the 55 analysts offering 12-month price targets for Infosys Ltd have a median target of 3,700, with a high estimate of 4,440 and a low estimate of 2,719. The median estimate represents a 12.37% increase from the last price of 3,292.7.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
