Thursday, October 08, 2009

INFOSYS  is to announce 2nd Quarter results tomorrow on 9 October 2009. This post is just a view about what the expectations are from the results and then we can see tomorrow how actual results go.  

According to CNBC-TV18's estimates, its net profit is expected to go down by 1.1% to Rs 1,509.4 crore in Q2FY10 versus Rs 1,527 crore in the previous quarter.
The company's revenues are expected to go up by 2.4% to Rs 5,604.3 crore versus Rs 5,472 crore, QoQ. EBIDTA (earning before interest, depreciation, tax and amortisation) is likely to go up at Rs 1,880 crore from Rs 1,868 crore, QoQ.

What had INFOSYS guided in Q1:-
-Revenues - Rs 5318-5413 crore and $ 1110-1130 million
-QoQ growth - down 2.8-1.1% in rupee terms and down 1.1%-0.7% in dollar terms
-Net profit implied Rs 1,357-1,381 crore
-QoQ growth down 9.5-11.1%
-Guidance given at 1 US $ = 47.91
-If they match Q2 guidance in $, asking run rate for next 2 quarters will be 0-1% versus 2-3.5% earlier

INFOSYS Q2 results for FY09 (announced in Oct 2008):-
Revenue Rs 4851 Cr
EBITDA Rs 1470 Cr
Adj Net Income Rs 1258 Cr

Infosys issues guidance based on the rupee-dollar rate at the end of the quarter, which is 48.11 for the September quarter. In the past few days, the rupee has appreciated by 3% to 46.68, which will not be reflected in Infy's guidance.

INFOSYS result day normally some panic sell-off is seen but whatever the result one is advised to avoid this stock for time being as there is a lot of volatility after the announcement of the results. Always read the fine print and then take decision of investing.

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