Infosys cracks about 6% post results; Q4 PAT @ Rs 3097 cr, little below estimate
Shares of Infosys cracked nearly 3 per cent but recovered quickly after the company announced results for the fourth quarter.
By ET Online | Updated:
NEW DELHI: Shares of Infosys cracked nearly 6 per cent but recovered quickly after the company announced results for the fourth quarter.
Infosys, India's second-largest IT services exporter, on Friday reported Profit After Tax (PAT) of Rs 3,097 crore for the fourth quarter of FY15, versus Rs 3,250 QoQ.
The Company has allotted 57,42,36,166 fully paid up equity shares of face value Rs 5/- each during the quarter ended December 31, 2014 pursuant to a bonus issue approved by the shareholders through postal ballot by capitalization of share premium.
The company has announced a bonus issue of 1:1. Also, the company has entered into a definitive agreement to acquire Kallidus and its affiliates for approximately Rs 750 crore in cash.
The record date fixed by the Board of Directors was December 3, 2014. Bonus share of one equity share for every equity share held, and a bonus issue, viz., a stock dividend of one American Depositary Share (ADS) for every ADS held, respectively, has been allotted.
Despite muted performance, analysts at top brokerage firms remain confident on the prospects of the IT major in long term, and advise investors to accumulate the stock on declines.
Infosys made an all-time high of Rs 2336 in February 2015, and from there it has entered into a correction mode. The multi-month correction is unfolding in a channelised manner.
The daily and weekly momentum indicators are in a bearish mode, and from short-term perspective there is some more downside potential in the counter, say experts.
Infosys is currently available at valuations that look attractive (i.e. not yet capturing the true intrinsic worth of the company), coupled with the potential gains from a growing US economy, the company's strong quality and top-notch management should ensure that it continues to perform well.
Analysts believe that despite the cross currency fluctuations, the IT sector shows growth potential due to investments in new technologies related social networking, media, analytics, and cloud computing (SMAC).
Infosys, India's second-largest IT services exporter, on Friday reported Profit After Tax (PAT) of Rs 3,097 crore for the fourth quarter of FY15, versus Rs 3,250 QoQ.
The Company has allotted 57,42,36,166 fully paid up equity shares of face value Rs 5/- each during the quarter ended December 31, 2014 pursuant to a bonus issue approved by the shareholders through postal ballot by capitalization of share premium.
The company has announced a bonus issue of 1:1. Also, the company has entered into a definitive agreement to acquire Kallidus and its affiliates for approximately Rs 750 crore in cash.
The record date fixed by the Board of Directors was December 3, 2014. Bonus share of one equity share for every equity share held, and a bonus issue, viz., a stock dividend of one American Depositary Share (ADS) for every ADS held, respectively, has been allotted.
Despite muted performance, analysts at top brokerage firms remain confident on the prospects of the IT major in long term, and advise investors to accumulate the stock on declines.
ADVERTISEMENT
Infosys made an all-time high of Rs 2336 in February 2015, and from there it has entered into a correction mode. The multi-month correction is unfolding in a channelised manner.
The daily and weekly momentum indicators are in a bearish mode, and from short-term perspective there is some more downside potential in the counter, say experts.
Infosys is currently available at valuations that look attractive (i.e. not yet capturing the true intrinsic worth of the company), coupled with the potential gains from a growing US economy, the company's strong quality and top-notch management should ensure that it continues to perform well.
Analysts believe that despite the cross currency fluctuations, the IT sector shows growth potential due to investments in new technologies related social networking, media, analytics, and cloud computing (SMAC).
ADVERTISEMENT
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
