Ahead of the announcement of Q2 results, Infosys share price jumped 4.38 per cent in the early trade on Monday, but wiped out all the initial gains after the results were revealed and fell more than 5 per cent intraday on BSE. (Photo: PTI)

Ahead of the announcement of Q2 results, Infosys share price jumped 4.38 per cent in the early trade on Monday, but wiped out all the initial gains after the results were revealed and fell more than 5 per cent intraday on BSE. Infosys share price reacted negatively after the company cut the full year revenue growth guidance in dollar terms. However, according to market experts, the company has posted better-than-expected Q2 earnings numbers.

Infosys share price opened at Rs 1,202.70, touched a high/low of Rs 1,219 and Rs 1,108.90 respectively in trade so far.

According to Angel Broking, Infosys posted a 6 per cent sequential growth in US dollar revenue to $2,392 mn v/s $2,339 mn expected. In constant currency (CC) terms, the company posted a 6.9 per cent quarter-on-quarter (qoq) growth. The volume growth during the quarter came in at 3.7 per cent qoq. In rupee terms, revenues came in at Rs 15,635 crore V/s Rs 15,204 crore expected, up 8.9 per cent qoq. EBITDA margin came in 27.8 per cent V/s 27.6 per cent expected, an expansion of 165 basis points qoq. The EBIT came in at 25.5 per cent, just in line with expectations, expansion of 152 basis points. Consequently, net profit came in at Rs 3,399 crore V/s Rs 3,345 crore expected, a rise of 12.2 per cent qoq.

In terms of geography, USA grew by 6.2 per cent qoq CC, Europe grew by 8.3 per cent qoq CC, India grew by 12.1 per cent qoq CC and rest of the world grew by 7.1 per cent qoq CC. In terms of domain, the FSI (Banking & Financial Services) grew by 6.4 per cent qoq CC, manufacturing grew by 5.8 per cent qoq CC, retail and life sciences grew by 8.2 per cent qoq CC and ECS ( Energy, Utilities, Communication and Services) grew by 7.8 per cent qoq CC.

On guidance for 2015-16, on CC terms, Infosys has retained it unchanged at 10-12 per cent, but dollar guidance has been revised downwards to 6.4-8.4 per cent against 7.2-9.2 per cent earlier.

Sarabjit Kour Nangra, VP Research, IT, Angel Broking, said, “The revision in the US$, is mainly on the outlook of the company on the currency front. The company has also mentioned that it expects the second half of 2015-16 weaker than first half, and also that it is witnessing headwinds in some client accounts. We maintain our ‘Accumulate’ rating on the stock with a target price of Rs 1,306.”

Nithin Kamath, Founder and CEO, Zerodha, said, “Infosys Q2 results are quite impressive, slashing the full year dollar revenue guidance is reflection of management’s realistic market expectations. The current dip in the stock price is perhaps an overreaction to the cut in revenue guidance and profit booking to a certain extent. Investors should stay put in the stock, if not for accumulating more on every dip.”

At 12:30 pm, shares of Yes Bank were trading 0.94 per cent up at Rs 732.00 on BSE. Yes Bank stocks gained 0.83 per cent at Rs 731.70 on NSE at the same time (PTI)

Shares of Yes Bank gained almost 1 per cent as the private sector lender received Reserve Bank of India’s approval to set up a mutual fund, asset management company (AMC) and a trustee company.

At 12:30 pm, shares of Yes Bank were trading 0.94 per cent up at Rs 732.00 on BSE. Yes Bank stocks gained 0.83 per cent at Rs 731.70 on NSE at the same time

In a BSE filing, Yes Bank said, “it has received an approval from the RBI to sponsor a mutual fund, and to set up an asset management company and a trustee company.”

It further said: “In its twelfth year of operation, as Yes Bank accelerates into its next phase of growth, this new business initiative will provide further acceleration to Yes Bank’s differentiated product offerings.”

Asset management companies and trustee companies will be wholly owned subsidiaries of Yes Bank, it added.

The lender said its AMC will channelise savings of retail and institutional investors in equity and debt capital markets.

“This will complement Yes Bank’s retail liabilities strategy and also allow the AMC to leverage the Bank’s distribution network for customer acquisition,” it added.

At 9:48 am, Infosys shares were trading 2.61 per cent down at Rs 1137.40 on BSE, while on NSE, Infosys shares were trading 3.48 per cent down at Rs 1126.80 (Reuters)

Shares of Infosys fell 5 per cent after rising earlier rising as much as 4.5 pct to mark its record high of 1,219.80 rupees.

At 9:48 am, Infosys shares were trading 2.61 per cent down at Rs 1137.40 on BSE, while on NSE, Infosys shares were trading 3.48 per cent down at Rs 1126.80

Infosys, India’s second largest IT services exporter reported a 9.8% rise in net profit for the second quarter ending September 30, 2015. The company posted a net profit of Rs 3,398 crore as compared to Rs 3,096 crore in the corresponding period a year ago.

The revenues of Infosys for the second quarter ending September 30, 2015 rose by 17.2%. The company reported a revenue of Rs 15635 crore as compared to Rs 13,342 crore in the corresponding period a year ago.

Brokerage houses were predicting a 4% plus sequential revenue growth and a marginal rise in operating profit margins.

Shares of its rivals also fell on account of Infosys’ 2nd quarterly results. HCL Technologies down 2 per cent while Wipro fell 0.3 per cent

(Photo: PTI)

The BSE Sensex and NSE Nifty opened in green on Monday tracking positive global cues. Sensex opened 163.08 points up  27242.60.

Here is a list of 10 stocks which are likely to remain in focus today

Infosys: The IT bellwether reported standalone net profit of Rs 6,306 crore for the quarter ended September 2015. The company posted consolidated net profit of Rs 3,398 crore in the same quarter.

Unichem Laboratories: There is buzz that medium-sized Indian drugmaker Unichem Laboratories is exploring the sale of its domestic formulations business. The proposal by one of India’s oldest pharmaceutical companies is at a preliminary stage and is being studied by large strategic investors and private equity firms. Investment bank Jefferies has been hired to seek potential suitors. The valuation could be $1-1.2 billion. Potential suitors could include some of the world’s top drugmakers such as Mylan, Abbott, Sanofi, Teva or even Pfizer.

Vedanta: Shares of Vedanta will be in focus. With reference to media reports titled “Vedanta eyes Solar Energy Biz, plans to create 500 MW capacity,” Vedanta after market hours on Friday clarified that the company has no firm plans to enter the solar generation industry and termed the media reports as speculation.

Tata Steel: Tata Steel announced after market hours on Friday that its hot metal production rose 3 per cent to 2.66 million tonnes in Q2 September 2015 over Q2 September 2014. Crude steel production rose 11 per cent to 2.51 million tonnes in Q2 September 2015 over Q2 September 2014. Saleable steel production rose 9 per cent to 2.41 million tonnes in Q2 September 2015 over Q2 September 2014. Deliveries rose 11 per cent to 2.33 million tonnes in Q2 September 2015 over Q2 September 2014.

Kolte-Patil Developers: Kolte-Patil Developers said that the board of directors of the company at its meeting held on October 9, has allotted 110, 15 per cent Secured Redeemable Non-Convertible Debentures Series III having face value of Rs 1 crore each aggregating to Rs 110 crore through private placement. The announcement was made after market hours on October 9.

GMR Infra: GMR Infrastructure’s subsidiary Kakinada SEZ has signed an agreement with Japan’s JGC Corporation (JGC) for co-developing the Japanese Oriented Food Processing Park at its Kakinada SEZ. JGC and GMR will jointly undertake a detailed study for developing and operating the export-oriented food processing park catering to various food and agro processing sectors such as sea food, fruits and vegetables, pulses and grains, dairy and spices and nuts. The park is planned to be spread over an area of 300 acres having both value-added and ready-to-eat products.

Suprajit Engineering: Suprajit Engineering has acquired the balance 10.88 per cent stake in the fully paid up Equity Share Capital of Phoenix Lamps from Argon India Limited, Mauritius & Argon South Asia, Mauritius i.e. 30,47,312 equity shares of Rs 10 each for a consideration at Rs 89 Per share aggregating to Rs 27.12 crore and completed second tranche of share transfer in line with SPA signed on May 2015. Earlier, the company had acquired 51 per cent stake in Phoenix Lamps on June 2015 and 0.05 per cent shares acquired from open offer concluded recently. With this the company takes the total shareholding in Phoenix to 61.92 per cent and concludes the acquisition activities related to Phoenix Lamps.

SpiceJet: Budget passenger carrier SpiceJet has embarked upon a major fleet and flight expansion programme for the upcoming winter season. The company will induct six new aircraft within 30 days. At present, the airline has in its next generation fleet 20 Boeing 737 and 1 Airbus A319 aircraft along with 14 Bombardier Q-400 aircraft. Further, the company has unveiled a new winter schedule, raising a total daily flight operation to 291 from the current 250, adding 10 new sectors, 30 new frequencies and 22 connecting flights.

Tata Teleservices (Maharashtra) (TTML): TTML has reported the subscriber figures as on September 31, 2015. The company’s total subscribers stood at 1,06,07,705 of which Wireline contributed 8,16,304, FWT 7,01,215 and Mobile 90,90,186 subscribers. In Mumbai service area, the company’s total subscribers stood at 39,34,444 of which Wireline contributed 5,33,752, FWT 5,835 and Mobile 33,94,857 subscribers while in Rest of Maharashtra, the company’s total subscribers stood at 66,73,261 of which Wireline contributed 2,82,552, FWT 6,95,380 and Mobile 56,95,329 subscribers.

Yes Bank: Yes Bank has exited debt-ridden Lanco Infratech, a move which may have been prompted by foreign research report that expressed concern about the bank’s exposure to highly leveraged companies. Yes Bank, which is among the 27 bankers to Lanco Infratech, has a superior loan structure, with an exposure of about Rs 250 crore that enabled it to exit the account. The bank has decided not to renew its Rs 250-crore loan to Lanco Infratech, and has invoked its powers to claim its right on the Rs 250 crore lying in the escrow account.

In the week ending October 2, IT major Infosys share price had surged and it managed to surpass private sector lender HDFC Bank, becoming the third most valued firm in terms of market valuation, with TCS leading the top 10 companies chart, followed by Reliance Industries (RIL).

Courtesy the Infosys share price rise, HDFC Bank market capitalisation moved downward in the ranking.

At the end of the week, Infosys commanded a market valuation of Rs 2,69,489.03 crore. This was Rs 432.68 crore more than HDFC Bank’s m-cap of Rs 2,69,056.35 crore.

During the past week, the market valuation of Infosys surged by Rs 7,315.77 crore to Rs 2,69,489.03 crore and HDFC Bank added Rs 4,570.52 crore to Rs 2,69,056.35 crore.

Shares of Infosys touched its one-year high level of Rs 1,197 apiece on Thursday.

TCS emerged as the biggest gainer among the top 10 firms, with its valuation soaring by Rs 12,555.44 crore to Rs 5,17,045.42 crore.