Infosys rallies 8%, sees record -high on BSE
IT major Infosys has rallied 8% and touched record highs on the Bombay Stock Exchange in early morning trade after it forecast strong revenue growth while announcing its fourth quarter results last week. In dollar terms, the company expects revenue to grow between 11.8% and 13.8% for the fiscal year ending March 31, 2017, Infosys said in an earnings statement.
Infosys reported a better than expected 3.8% quarter-on-quarter (QoQ) growth in its consolidated net profit at Rs 3,597 crore for the fourth quarter ended March 31, 2016 (Q4). Revenues grew 4.1% at Rs 16,550 crore on a QoQ basis.
Analysts on an average had expected profit of Rs 3,542 crore on revenues of Rs 16,586 crore for the quarter.
Infosys guidance reassures street that the company is back to industry leading growth trajectory (FY16 CC revenue growth of 13.3% and volume growth of 14.5% YoY). 4QFY16 constant currency revenues grew 1.9% QoQ and volumes grew 2.4% QoQ,” Prabhudas Lilladher said in a note.
The brokerage house reiterate Infosys as top pick with target price of Rs 1,530, given a solid operating performance in FY16 and strong FY17 outlook it expect the stock to trade at premium to sector peers.