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By Saradha | Jul 16, 2020 03:45 PM

IT Major Infosys has achieved better earnings than what was expected from its Q1 Results which was announced recently.  Infosys posted a net profit of ₹4,233 crore by the end of the first quarter on June 30. Last year the amount was ₹3,798 crore. The firm has also secured deals worth $1.74 billion during the period which is higher than the $1.65 billion reported in the previous quarter.

Business IT Infosys hits record high share value and Q1 results

"Our Q1 results, especially growth, are a clear testimony to the relevance of our service offerings and deep understanding of clients' business priorities which is resonating with them in these times," Salil Parekh, Chief Executive of Infosys, said in a statement.

Apart from the firm’s ability to secure lucrative deals, the depreciation of Indian rupee against the US dollar is also being attributed as a reason behind the success by analysts.

“The Bengaluru-based firm expects revenue to be flat or grow 2% on a constant currency basis and operating margins of 21%-23% for 2020-21. This compares with a revenue growth of 9% or more in the last two years on a constant currency basis. The company had not provided any projections in the March quarter, citing COVID-19-related uncertainty,” Livemint cited in its report.

The company’s shares have increased exponentially and has added ₹50,000 crore to its investors' wealth in the first hour of trade on BSE (Stock Exchange). As per media reports, the company has managed to record an 11.4% increase in its quarterly net profits and has won large client deals despite COVID induced losses. 

The firm’s share was priced at ₹950 earlier but now Domestic Brokerage Edelweiss has increased it the target price on Infosys to an impressive ₹1,080, 

"Infosys’s results beat estimates substantially (revenue/margins), but the key positive is the reiteration of revenue guidance growth of 0–2% (CC) for FY21. We believe Indian IT is at the bottom of a tech upcycle as explosion of digital activity is catalyzing transformation of core, cloud adoption and build-up of digital capabilities," the brokerage said.

Another brokerage Motilal Oswal too has raised its target price on Infosys to ₹1,050.

"The company’s absolute and relative performance (v/s TCS and Wipro) during the quarter is indicative of some of the investments made in the previous years now paying off. As the COVID-19-led disruption eases, we expect further expansion in margins as investments stabilize and back-ended productivity benefits kick in. We expect Infosys to be a key beneficiary in terms of recovery in IT spends in FY22," the brokerage said.

அரசியல், விளையாட்டு, நாட்டுநடப்பு, குற்ற சம்பவங்கள், வர்த்தகம், தொழில்நுட்பம், சினிமா, வாழ்க்கை முறை என பலதரப்பட்ட சுவாரஸ்யமான செய்திகளை தமிழில் படிக்க இங்கு கிளிக் செய்யவும்      



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