InvestorQ : what is your view on the Infosys stock after the financial results announced on 20 April for the March quarter?
Anjana Aiyar made post

what is your view on the Infosys stock after the financial results announced on 20 April for the March quarter?

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Arya Nanda answered.
1 year ago
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Infosys reported net profits of Rs.4,321 crore for the March quarter; lower by 3.1%. For the March quarter, revenues were marginally up by 0.8% at Rs.23,267 crore. While numbers may be below street estimates, the company has managed to hold performance. However, the CEO sounded confident of the medium to long term prospects for the company despite the short term challenges.

Like in the case of Wipro, Infosys has also refrained from giving any revenue guidance for the coming year due to the business uncertainty emanating from COVID-19. The company has clarified that it will commence giving guidance on revenues and margins once the outlook becomes clearer.

In the fourth quarter, Infosys had signed fresh deals worth $1.65 taking the total deals for the year to $9 billion. The operating profit margins (OPM) were lower by 70 bps at 21.2%. Not much of damage is seen in the numbers so on need not get disappointed by the quarterly numbers.

However, in the absence of guidance, there is little by way of future traction available. It is better to be cautious on tech stocks like Infosys for now.





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