Infosys Technologies Ltd Announces Q3FY11 Result
01/15/2011

Infosys Technologies Ltd recently announced its Q3FY11 results, which closely matched the estimations made by Unicon. Infosys witnessed a growth of 2% QoQ & 24% YoY, driven by 3% QoQ rise in volume, to record a revenue of INR 71,060 million.

Online PR News – 15-January-2011 – – Infosys Technologies Ltd recently announced its Q3FY11 results, which closely matched the estimations made by Unicon. Infosys witnessed a growth of 2% QoQ & 24% YoY, driven by 3% QoQ rise in volume, to record a revenue of INR 71,060 million. Other highlights of the results are as follows:

Q3FY11 Result Highlights

• EBITDA for the quarter was INR 21,470 mn, which was up 2% sequentially and 20% on YoY basis. EBITDA margin was flat QoQ.

• PAT for the quarter was INR 17,800 mn, up 2%, QoQ and 14%, YoY. PAT was inline with Unicon estimates.

Outlook & Valuation
FY12 is likely to be a normal year as per management. Pricing has improved sequentially which is a positive indicator for FY12 demand. Growth is broad based across verticals – strong growth in banking, manufacturing and retail with telecom the only drag. The company added 40 new clients in Q3FY11 against 27 clients in Q2FY11; of which 8 new clients belong to global fortune 500 groups. Company has expressed confidence on maintaining margins. Slow recovery in the developed markets and currency volatility remains a primary concern for the company. At CMP the stock trades at 21x its FY12 earnings estimate. Recommend Accumulate with a target of INR 3600.

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