Infosys reported its robust quarterly results on Tuesday pushing the CNX IT Index up significantly. Infosys witnessed a whopping hike of 11% in stock prices while CNX IT index moved 454 points or 4% at 11,721. CNX Nifty also rose 0.35% to touch 8,627 levels. It was the biggest single-day gain for Infosys since January 2013. Companies that gained due to the exceptional growth of Infosys included Wipro, NIIT Technologies and Tech Mahindra amongst others.
Infosys Beat Market Expectations
Analysts had predicted the company to report Rs. 2,993 crore profit for 1Q2015; however, it managed to earn a net profit of Rs. 3,030 crore, which set the market on fire. As soon as the results were announced, the company surged to a record level of Rs. 1,149 on the NSE.
Company’s revenues for the quarter surged 7% quarter-on-quarter to Rs. 14,354 crore is better than analysts’ estimates of Rs. 14,106 crore. This marks the highest growth in the last one and a half decade for Infosys. The company reported 5.4% quarterly growth in volume, highest compared to the last 19 quarters.
The company increased its yearly outlook after posting excellent results. The revenues are expected to grow at 11.5%-13.5% in rupee term and 10%-12% in constant currency terms in the current fiscal year. The 50-Share Nifty was 0.2% higher at 8,619.
Infosys stock touched a high of Rs. 1,149 and low of Rs. 1,035 during this timeline. Right after the results, NIIT Technology surged 7%, Wipro 2%, Rolta India 2.1%, and Tech Mahindra increased 1.7%.
Experts claim that these numbers will bring positivity in the market and drive a well-directed growth in the IT sector over the next few days. Infosys, the second largest software exporter of India, is known for living up to investors’ expectations over the years, and this enactment is a true evidence of management’s commitment.