Infosys consolidated net profit growth in first quarter

Infosys consolidated net profit growth in first quarter

   July 16, 2018       prabhakardalvi

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Global software major Infosys on Friday reported Rs 3,613 crore consolidated net profit for the first quarter of fiscal 2018-19, registering a 3.7 per cent annual growth from Rs 3,483 crore in the same period year ago.Sequentially, however, net profit declined 2.1 per cent from Rs 3,690 crore a quarter ago.

"Consolidated revenue for the quarter (Q1) under review grew 12 per cent annually to Rs 19,128 crore from Rs 17,078 crore in the like period year ago and 5.8 per cent sequentially from Rs 18,083 crore quarter ago," said the city-based IT major in a regulatory filing on the BSE.

Digital revenues contributed $803 million, accounting for 28.4 per cent of the total income from operations, with 8 per cent sequential growth and 25.6 per cent annual growth in constant currency.

"The strong revenue and margin performance in the quarter shows our dual emphasis on agile digital and Artificial Intelligence (AI)-driven core services are resonating with our clients," said Infosys Chief Executive Salil Parekh.

Operating margin at 23.7 per cent is in line with the guidance given in the beginning of the quarter in April.The company clarified that profit decreased Rs 270 crore for the quarter following re-measurement of its assets for sale, including consideration of progress in negotiations on offers from prospective buyers for its US-based Panaya software subsidiary."

A reduction of Rs 270 crore has been recorded in the fair value of Panaya for disposal," pointed out a statement.With 8 per cent sequential growth in agile digital business and increase in large deal wins to over $1 billion, Parikh said the company was seeing good traction in the market."Large deal wins have crossed $1billion, with financial services accounting for 40 per cent of them," said the outsourcing firm in the statement.

The number of $100-million clients increased by four to 24 during the quarter."Our emphasis on deepening client relationships resulted in strong client metrics, including increase in $100-million+ clients to 24," said Chief Operating Officer U.B. Pravin Rao.The company has retained the 6-8 per cent annual revenue guidance it gave in April for the fiscal (FY 2019), with the operating margin guidance at 22-24 per cent.

Utilization (excluding trainees) touched an all-time high of 85.7 per cent during the quarter."We had broad-based financial performance on multiple fronts, including return on investment crossing 25 per cent, free cash flow up 32 per cent quarterly and operating margins at the upper quartile of the guidance", said Chief Financial Officer M.D. Ranganath.The company added 70 new clients in the quarter as against 73 quarter ago and 59 year ago, taking their total to 1,214 as against 1,204 quarter ago and 1,164 year ago.

The company also announced 1:1 bonus share to mark 25 years of its public listing in India and increase the liquidity of its equity shares."The Board has recommended the issue of 1 bonus share for every equity share held to celebrate the 25th year of the company's public listing in India and further increase liquidity of its shares," said the statement.

The company has also decided to give a stock dividend of one American Depository Share (ADS) for every ADS held to mark the occasion.This is the eighth time Infosys rewarded its investors, including promoters, co-founders, institutional and retail investors, worldwide, with the first being on August 19, 1997 and previous on June 15, 2015.The company, however, gave 3:1 bonus share on July 2, 2004, while it has been 1:1 on six times in 2015, 2014, 2006, 1999 (twice) and 1997.

The company's blue-chip scrip of Rs 5 face value gained Rs 14.50 at the end of Friday's trading on the BSE to close at Rs 1,309.10 per share as against Thursday's closing rate of Rs 1,294.50 and opening price of Rs 1,310. The scrip also touched a high of Rs 1,331.15 and a low of Rs 1,300.15 during the intra-day trading sessions.

Meanwhile, the Board has appointed Michael Gibbs as Independent Director for three years on the recommendation of the nomination and remuneration committee.

Gibbs served as a global information officer with the British Petroleum and has vast experience in the oil and gas sector in Britain and the US.In a related development, the company delisted its ADS from Euronext Paris and London on July 10 and July 5, respectively, due to low average daily trading volume of its shares on these exchanges.

owler, Bengaluru

Note : Any blog OR content suggestion you have , please mail me on prabhakara.dalvi@gmail.com

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Infosys divest onmobile system

Infosys divest onmobile system

   February 19, 2018       prabhakardalvi

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In market volatile, some companies having trouble facing financial problem. Present all Q earning, FDI, GST etc mixed in Storm of critical markets. some big fish help small one to survive in market.

but when they need extra they pull out all fund.

Major software company divest Onmobile in this critical and unstable market. 

when this blog type - 

Infosys  recover by  Rs. 6.70 (0.55%)  and Onmobile  Rs. 1.70 ( 3.51%) 

Onmobile nearby 52 week low, i suggest don't touch 

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Infosys crack down from 1100 to 870

Infosys crack down from 1100 to 870

   August 21, 2017       prabhakardalvi

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Infosys crack down from 1100 - 923 - 870 with sell behave in investor like short and long-term with scene SIKKA exist as a CEO. 😞

with last entry when I see 874 sold 44916 qty share b end of the day.

in Open interest change positive by 9%. it's going down by target 770.😁

We aware about Sikka exit from Infosys, this is bad news for the trader who plays trade on Magin or contract basis.

Market value down by 13% of the portfolio of my dearest friends, they had intelligent thought for Infosys gives range 970-1197.

Board member of Infosys impress Investor under governance of Sikka, 😧

Some analyst intervied on Market show, after appont CEO SIKKA some investor not happy with work style. Cause he is from US valley and his strategy work like US employee body.

About founder MURTHY, said by V Balkrishanan " He don’t arise any issue against Sikka and his work ability. Bust some media raise rumor help to crack market value of Infosys.

Investor waits and watched for investigators report who responsible, who answerable, why????

Market crash by 200 with Infosys plunged by 5%`

We suggest creates the new body of CEO and MD body for attracting more investor and market DII.

Good news for market Major players LIC gives BUY rating for investing.

I think some analysis give line for BUY in famous analyst website.

Some care of money or own investment we believe and depend on investment gurus connect some tv shows and analytic apps.

Within two days infosys crack down below 880, this is bad for short term investor.

As per my analysis its going below 770, why its fear between who enter to buy INFOSYS with Sikka entry as a CEO.

Its my opinion for Infosys wait for 800-780 , make Buy call after boom you will earn double.

HAPPY INVESTING

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Todays Stock Market Summary Chart Of Friday February 3, 2017

Todays Stock Market Summary Chart Of Friday February 3, 2017

   February 03, 2017       prabhakardalvi

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Note : Any blog OR content suggestion you have , please mail me on prabhakara.dalvi@gmail.com

• 12 April 2013. Infosys corrected by a remarkable 22%, wiping off Rs 357 billion in investor wealth. The reason: disappointing revenue guidance.
• 17 October 2014. Tata Consultancy Services (TCS) corrected by 8.5% in a single session. The reason: disappointing revenue guidance.
• In Trump's first month as president, Infosys and TCS corrected by 8% and 7% respectively. The reason: prospects of disappointing revenue guidance.

 Do you see a pattern?

The recent correction of IT majors, though substantial, is nothing new for the sector. Nor is the reason for the correction.

The world is speculating on a Trump crash. So naturally, every correction to Indian IT is branded as a fallout from the Trump crash.

But is this so-called Trump crash a reason to act on Indian IT stocks? Of course, the answer does not depend only on stock prices. Other factors are relevant.

So we put three key questions to our in-house IT sector expert. Incidentally, they're the same three questions we asked in 2013 and 2014.

Is the business model affected? The immigration bill seeks to double the minimum salary for IT hires to US$1,30,000 from the current US$60,000. It also seeks to make a master's degree compulsory, among other requirements. And of course, the cost of the visa would go up.

Now, unlike what Trump would like to believe, Indian IT firms are no longer just back-offices to the world. Higher-value contracts have been critical to companies for several years now. And changing the mix of employees to comply with the requirements does no permanent damage to their business model.

Can the risk be hedged? Companies would need to adopt various counter measures, like hiring more locals, getting more work done from India or other offshore locations, cutting down on low-margin clients, and stepping up automation.

None of this is impossible to execute. And if done with long-term interests in mind, the onetime effort may be well worth it. So perhaps what some now perceive as a negative development will actually be a boon for certain Indian IT players.

What's the actual impact on fundamentals? If passed into law, the bill would put pressure on Indian IT firm margins inFY18. The actual impact, however, may differ from company to company. Several of them have reduced their exposure to the US in recent years. And even the companies that would hit hardest likely have enough cash on their books to recover from the shock.

Indian IT companies will need to rise to Trump's challenges. But fortunately, most were already gearing up for this. Trump may have only accelerated their defence.

So as long as you aren't worried about the revenue guidance in the coming quarters, you need to do just one thing: Stay vigil on valuations.

And you never know, the Trump crash may be an opportunity to act on not just IT but lots of other safe stocks as well.

Chart of the Day  

Large Indian IT companies, on an average generate more than 50% of their revenues from the US clients. They have built a strong client base over the years in the US market. If the suggested changes for immigration get cleared, the cost component for the Indian IT companies will go up. The need to reduce their US exposure and move to other geographies is a given.

Will Trump Mania Impact IT Companies Revenues from US?

But we believe that it is unlikely that the companies will substantially bring down their focus on the US. Instead companies may look out for other means to reduce costs or protect margins.

If you have been with us for long, you know that we have played the gentleman's game of value investing...and we have a solid track record of success there.

But you pay a price for this gentlemanly approach to investing. You have to patiently wait for the bulls to come to you. And you have to let go of many fast, raging bulls.

 Substantial part of the of central government expenditures are undertaken by state and local governments. Most states in India like the Centre run budgets where expenditure is higher than revenue, leading to deficits.

As reported in today's Business Standard, the fiscal responsibility and budget management (FRBM) review committee believes India's debt to GDP ratio will be 60% in 2023. This comprises 40% for the Centre and the balance 20% for state governments. As per the current available data, the outstanding debt positions of the Centre and state governments show the combined liabilities at 69.5%.

So containing this burgeoning debt is certainly a tall task for the government.

Generally, when the country's growth is soaring, some portions of debt is reduced. But that is nit excatly the case for FY17-18. The economy may continue to see impact of demonetization for months to come. Thus the nominal GDP growth may actually be much lesser than the projected11.75%.

The Budget has laid down large allocations towards social welfare. But it is important for the government to realize that while public spending is necessary, it will be important to keep its borrowings in check. Even the RBI has warned the government about this. 

In the meanwhile, after opening the day on a flat note, the Indian share markets have continued to trade on a weak note and are trading marginally below the dotted line. Sectoral indices are trading on a mixed note with stocks in the pharma sector and realty sector witnessing maximum buying interest. Auto stocks are trading in the red. 

At the time of writing, the BSE Sensex was trading down 68 points (down 0.2%) and the NSE Nifty was trading down 24 points (down 0.3%). BSE Mid Cap index was trading up by 0.6%, while the BSE Small Cap index was trading up by 0.8%.

 Investing mantra  

"Over the long term, the stock market news will be good. In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a fly epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497". - Warren Buffett

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