What Dipen Shah says on Infosys results

Shares of IT major Infosys closed the day nearly 7 per cent higher today after hitting life high. This was after the company beat PAT estimates and announced bonus shares in ratio of 1:1. The company also maintained its FY15 revenue guidance at 7-9 per cent.

Infosys reported a consolidated net profit of Rs 3,096 crore for the quarter ended September 30, up 7.27 per cent, from Rs 2,886 crore in the previous quarter. The net profit is better than ET Now poll estimate of Rs 2864.4 crore.

Here's what Dipen Shah, Head - Private Client Group Research, Kotak Securities, said:

“Infosys results were higher than our estimates, both on the revenues and margins front. The guidance has been maintained, which is along expected lines. The company has improved efficiencies while adding a relatively higher number of employees, which is encouraging.

The new CEO has outlined his strategic vision for the company, which, we believe, should allow Infosys to achieve higher growth rates and sustain margins over the longer term.