Consolidated results for the
quarter ended December 31, 2011 were reported by Infosys today. The highlights
of the same are:
1)
Revenues were Rs 9,298
crore for the quarter ended December 31, 2011; QoQ growth was 14.8%; YoY growth
was 30.8%
2)
Net profit after tax was Rs 2,372
crore for the quarter ended December 31, 2011; QoQ growth was 24.4%; YoY growth
was 33.3%
3) Earnings per share (EPS) was Rs 41.51
for the quarter ended December 31, 2011; QoQ growth was 24.4%; YoY growth was
33.3%
The results beat most of the market expectation. But the
flat earnings projection (QoQ) for the last quarter of the year owing to
volatile economic environment especially in the Euro zone dampened the mood and
the stock of the company fell 8.4% by the end of the trading session. Now the
question is: Is this fall justified?
Let us take a look at the Q4 guidance given by Infosys:
1) Revenues are expected to be in the range of Rs 9,391 crore and Rs 9,412 crore
2) Earnings per share (EPS) is expected to be Rs 42.12
Although this is almost flat QoQ,
but if we consider the YoY implications of this guidance, revenues are expected
to grow by 29.5% to 29.8% and
EPS by 32.4%. This is a rather impressive YoY growth which was last seen during
FY2008-09 for Infosys. For the past two years, the EPS growth was rather
sluggish as compared to this. But is this stock fall owing to a drastic
reduction in value of the company?
