Infosys shares surge over 7% on healthy Q2 results, guidance
Shares of IT major Infosys on Friday surged over 7 percent after the company revised its US dollar revenue guidance upwards to 9-10 percent for the 2013-14 fiscal.
Mumbai: Shares of IT major Infosys on Friday surged over 7 percent after the company revised its US dollar revenue guidance upwards to 9-10 percent for the 2013-14 fiscal.
After making a strong opening, shares of Infosys further jumped 7.54 percent to Rs 3,360 -- its 52-week high on the BSE.
At the NSE, the scrip gained 6.72 percent to touch its one-year high level of Rs 3,338.
The scrip was the top gainer on both the key indices -- Sensex and Nifty in morning trade.
"Infosys reported healthy set of results for Q2 FY14 with dollar revenue significantly ahead of estimates.
"With the current set of results, clearly the stock has got rewarded and we expect further re-rating of Infosys after two consecutive quarters of healthy performance," said Ankita Somani, Research Analyst-IT, Angel Broking.
Rise in Infosys' stock was significant in sending the BSE benchmark Sensex higher by 215.15 points to 20,488.06 as the scrip alone contributed 91.74 points to the overall market gain in the morning trade.
"Infosys numbers and outlook were in-line with market expectation, but some profit-booking is expected," said Kishor Ostwal, CMD, CNI Research.
Infosys today reported a 1.6 percent rise in consolidated net profit to Rs 2,407 crore for the second quarter ended September 30, 2013, on the back of large deals and increased sales from Big Data and Cloud.
The Bangalore-based firm had reported a net profit of Rs 2,369 crore in the year-ago period, it said in a BSE filing.
Consolidated revenue was up 31.5 percent to Rs 12,965 crore from Rs 9,858 crore in the year-ago period.
India's second-largest software services exporter, which had kept its US dollar revenue guidance unchanged after the first quarter results, revised it upwards to 9-10 percent for the 2013-14 fiscal from 6-10 percent earlier.
It also revised rupee revenue guidance to 21-22 percent for the 2013-14 fiscal from 13-17 percent earlier.
Meanwhile, buying was also seen in other IT stocks, with Wipro trading higher by 2.79 percent. While TCS gained 2.23 percent, HCL Tech rose by 4.43 percent.
Led by the gains in these stocks, the BSE IT index rose by 3.56 percent to 8,550.79 and was the top gainer among the 13 sectoral indices.